Friday, September 9, 2011

Nested 1-2 or bearish set up?

I was way off on thinking the market would climb over 1200 again and instead it sold off, this just reinforces the idea of following the TA mechanically and give little weight to everything else during periods where extremes are absent. And as bearish as this wave was, it needs to break previous lows for another bigger bearish wave to resume. If a higher low is maintained, the odds will favor higher intermediate highs. Going by EW it looks like we are due for a bounce only to sell off again, so we'll see how the market bounces early next week. I will be patiently waiting for a good spot to go hedge, short, or go long..

Have a good weekend!

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