Tuesday, October 4, 2011


So the market rebounded.. 4%+ in the last 40 minutes. And that potential bearish leg to the 1060-1080 area I was speculating about yesterday materialized so I think the bottom for the bearish wave from 1370 is officially in. I am looking for a retracement rally back to the 1200-1250 area in several weeks time. I am sure the EU will find some sort of solution to the crisis and things will seem good enough to rally back to that area. However, as long as the market remains under the 200 day ma, we are in a bearish market. My longs are intact and I will be selling at oversold conditions and using the TA as a guide, which has worked great in the past couple of months. The TA is currently at 1141 so maybe we'll get there in a session or two.

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