Wednesday, December 14, 2011

1200 to be tested?

The 50 day support broke today and went to the 50% retracement level of the rally from 1158. The next level of support is 1200 and we might just test that before seeing if we have a rally from there or just a bounce. The way I see it the next bullish wave has to start with a strong impulsive wave, weak waves would imply lack of conviction, especially if there are no closes over the 200 day MA. With this said, I still see this as a correction and a rally should start sooner than later so the market needs to re-capture the 50 day MA asap or risk a sell off.

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