Tuesday, May 10, 2011

Diamond Bottom Targets 1385

The market broke out of the triangle today and in the process captured the TA. So this shows more clarity of where the market is headed next. I labeled the waves and unless the market proves me wrong, this is a W3 wave in process. Also, the pattern that was formed is a Diamond bottom which effectively now targets 1385. We would need confirmation on a rally with stronger volume to solidify this pattern so we'll see what kind of day we get tomorrow.

I went 200% long today at the close and I'm using the TA as my stop loss for half of the position. Also, I did some calculations and as long as the TA does not get closed under in the next 20 days. I see the market reaching 1400 this month, 1403 to be exact.

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