Wednesday, May 18, 2011

Counter rally or beginning of real rally?

The market rallied as I was expecting from yesterday's analysis and it managed to test the TA which is served as resistance. The close today is slightly right under the TA which is 1341 today. For this wave to become the start of a real rally we have to see follow through rally tomorrow and a solid close over the TA. Anything that bounces off the TA is just a test and a counter rally at this point. Note the market was able to break away from the the upper green bearish line and the next hurdle will be the blue trend and resistance at 1351. I think as long as commodities keep rallying and the dollar keeps weakening, the equities rally will continue.

No comments:

Post a Comment