Thursday, May 31, 2012

Consecutive closes under the TA

The market managed to close under the TA again and I almost changed the signal to the bearish side but I have the trend slightly sloping up. So we need another close under the TA or an impulsive wave either way to dictate direction. I see 5 waves that ended at the 1298 low today and despite the sell off, we have been getting higher lows and higher highs (the 1335 level reached on Monday turned the weekly trend to the upside). So if the market can not make lower lows, it has a good chance of taking out 1335. When the A wave started, I posted that it could be an A or a W1 and that we could see a sideways correction. So we have now gotten that correction and the market is getting ready for an impulse to either finish a bearish 5th wave to test the 200 day MA or an bullish W1 to 1364+.

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