Friday, January 13, 2012

Triple Top or minor correction?

The market showed signs of weakness today as it traded below the Trend Average for the first time in 3 weeks and in the process left a pattern that could potentially turn out to be a triple top. However, the market closed above the TA so we could still call this a minor W4 correction. The count I posted is highly speculative as it goes against the trend but as you probably already know, I am leaning towards a substantial correction at this point. I think the market will correct to the 200 day ma (it already has to the TA) and I think we should see the market roll over starting next week or so. I sold the rest of my longs today when the TA was breached so I am mostly cash and hedged at this point. And like I said a few days ago if the market makes it to the 1315-1320 aread on one more quick impulse I will go short.. the Santa Rally can only last so long.

Have a great weekend!

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