Tuesday, November 29, 2011

More Upside to Come

The market rose as expected following the blue line I drew yesterday and it seems like we will now enter a correction for this wave. I'm not sure what degree of a correction we will get but I see a possibility of this bullish wave from 1158 just finishing a W3 and if that is the case we will see a mild correction and then see a bullish W5 to finish the wave. The alternative is that we retrace about 20-25 points and call it a W2 or a B, which would then set the market up for a bullish wave that will take the it beyond 1220. Today the TA was finally tested and the market close barely below the TA, so I am looking for a change of trend in positive consecutive closes in the next few sessions. The bearish TA signal was given 3 weeks ago so maybe it's time for it to turn bullish.

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