Friday, March 2, 2012

Bearish Wave Scenario

It is always risky to pre-empt a change of trend but since we've reached an important Fib ratio (1376-1378), I am going to start assuming the correction will start any time now. And the chart I posted today reflects that, I see a bearish nested 1-2 set up that should gap down Monday or start bullish and sell off hard. There is the possibility of a higher high given the fact the market managed to testthe Trend Average a 3rd time in the last few sessions today at 1366 and using the TA system alone would have us staying long. The market needs to break 1366 on Monday, if that holds then we could go up to 1380's. But considering all the other signals, I am comfortable in going against the trend at this point. I am keeping my volatility positions and hoping they will shoot up 10 points next week! lol.

Have a great weekend!

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