Tuesday, May 15, 2012

Almost at the bottom?

The market made another lower low today and in an ideal world we could get one last capitulation sell off so buyers can jump in. But as it is the market is oversold and very ready to start rallying to the Trend Average. Hard to tell if the selling is done yet but ideal levels for this wave to end would be 1321 or 1310, we'll just have to wait and see if the bulls are brave enough to jump in. If we get another low, I'll probably deploy some cash to work on the long side but I would only be playing the rebound as it seems like we will see further downside after the counter rally at this point. And in the overall picture, remember this is just a normal expected correction within a bull market.

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