Friday, April 20, 2012

Bearish consolidation

The market had a bullish morning again only to be fade towards the end of the day. The market action is within the bearish flag I posted yesterday and it might have more up and down action within the channel next week as well. These are the types of markets that are the hardest to trade as they technically stop trending short term and positions get constantly whipsawed. However, the intermediate trend is clearly down and like I said yesterday, unless we see upper resistance break chances are we are going to the Fib retracement area in a swift bearish wave. Perhaps the market really wants to wait until May for that? One of the clues can probably be seen in AAPL. It is currently in a C or bearish W3 wave after an euphoric run up and when market leaders start tanking, so does the market.

Have a great weekend!

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