Wednesday, December 7, 2011

Sideways Correction Continued

The longer the market keeps trading sideways the higher the chance we're going to see a rally to break out of this range. But anything is possible at this moment since the market is waiting for the outcome from the EU meeting. By looking at the market I'd say there is money on the sidelines ready to jump in as soon as good news come out of the summit while those with positions are in a wait and see mode. So we'll just have to wait for couple of more sessions to see what happens next. So far the 200 day ma has served as an area of resistance and should the market break convincingly above this level, we might see 1300 next.

I am staying put with my longs until I see a good selling spot or until the market breaks the TA which is currently at 1229 and rising.

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