Wednesday, September 7, 2011

Target 1210 then 1230?

The market rallied as I expected when the previous correction started and now I am looking at how the market behaves around these levels. I mentioned it was very important how the market got to 1200 last week and so far it is looking like the market is aiming for 1230 and quite possibly the 50 day MA at 1248. With the VIX at 33, I can see the market going to 1250 in couple of days if we get a violent rally. With that said, the next level of resistance is 1210 which if it holds, will set the market for a Head and Shoulders formation that would target 1040 so it will be an interesting next few sessions. I am long and planning to hedge depending on how tomorrow develops. The TA was crossed today and the short term trend will be confirmed bullish should the TA level hold.

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