Wednesday, November 16, 2011

50 Day MA Test - Lower Low Tomorrow?

The market is finally revealing its intentions and confirming we are on our way down. There are different ways to take a look at the triangle but I see the pattern completed and a gap down tomorrow or continued selling would confirm a bearish 3rd wave (which I had been expecting since Monday). So I am inclined to think the market is setting its sights on the 50 Day MA which is at 1205 as of today, that would be a logical spot for a bounce. However, in an ideal world we would get a correction until Thanksgiving and then see a beginning of the year end rally. So we'll have see how the week ends. I am still in cash and being patient.

And btw Gold seems like it's topping so this is a good time to take profit. I mentioned the bottom couple of months ago when it was around 1600 and I think it's headed back to that level again.

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