Monday, April 30, 2012

New High in May?

The market finally corrected a little today and it seems like there might be some more room to correct to the Trend Average which currently stands at 1386. After this correction, if the TA holds then the 1422 level will likely be tested (if not broken) in the next few sessions. It remains to be seen how the rest of the bearish wave evolves but so far it looks like an ABC correction and should a W3 come after that, then we're looking at high 1400's or even 1510 as the end of the impulse. So if you're short, watch that TA as it will save you $ and frustration.

On a side note, I wanted to point out that I place trends before any counts (since I had a person upset at how the trend changed?). Waves are highly subjective but averages are mathematical equations. There is no point in arguing with numbers, especially if the trend goes against you.. so to those who like to stick to their gut feeling, just look at the left hand side for reference on the trend changes and its returns.

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