Tuesday, January 3, 2012

1292 Target

The market followed through and today's move confirms the 3rd wave of the W5. I think the market will test 1292 but most likely it will go above 1300 and some more. The current bullish intermediate wave that started at 1203 has a little more to go before getting exhausted so as soon as the W5 is complete it will be time to take profits and get back at the next bearish period, which should come in the next week or two. Also, today's close is very bullish as we're well above the 200 day MA, the Trend Average will also be above it tomorrow and we got the 13/34 weekly cross and soon the 50/200 Golden Cross. So probabilities favor a beginning of a bull market at this point and the only way this could be reversed is if the coming bearish intermediate wave trades well before the 200 and the 50 day MA.

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