Thursday, January 12, 2012

Market Update

The market seemed like it was on its way to 1300 this morning but instead traders piled up to take profits. So we continue to have resistance in the 1296 area but from the look of things, the market really wants to get over the 1300 mark before going into correction. Notice how all of a sudden things seem to be ok if you read the news, how the European issue appears like it is being solved. When the media is this positive, it is usually a sign of a top. I saved the news from the day the market bottomed at 1158 to make a point but I can't find the links now to post, if I find them tomorrow I'll post them so you can see how news themselves can be used as tool.

So going forward the plan is the same. I'll unload the rest of my longs at a spike above 1300 or when the short term trend turns negative per Trend Average confirmation.

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