Monday, January 30, 2012

Short term bullish trend being challenged

The market seemed to have put in a C leg this morning and it seems like we might get a complex correction. If the market can trade above 1320 then we might see the resumption of the bullish trend. Today we had the first close under the Trend Average in over a month and another bearish close tomorrow would confirm a bearish short term trend. Also, the MACD on the daily is giving a sell signal so while the golden cross is going to happen, the best time to get in the market might be after the market does a proper correction. I am maintaining my short position in the meantime to see how the next bearish wave behaves.

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