Tuesday, November 1, 2011

Sell Off

The market sold off hard as I expected (when 1255 was broken) and now it seems like it has another wave down to test 1200 before rebounding to the 1250? area (Watch for Head & Shoulders if that happens). But again, the fact the market has sold off 70 points after 220 point run is essentially expected and not much of a surprise. All the market needed was an excuse. The real question going forward is whether the market is going to continue the bear market or bounce back above the 200 day MA. So far we have 4 waves down and once the 5th is complete we can start speculating on whether this is an A of a correction or a W1 of a continuing sell off. I lean bearish as long as we trade under the 200 day MA. I did not hedge today as I rather wait for the bounce and do this at the TA.. too bad the sell off started yesterday in the last few minutes. I assumed 1255 was holding since I checked 15 min before closing.. oh well, it was Halloween and that was actually more important.

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