Tuesday, June 19, 2012


The market found the fuel overnight to rally past the 50 day MA today and if advance can clear the 1360-1365 area then there is a good chance the next stop is the 1385-1390 level. But for now the market is overbought (it has advanced aprox 100 points from the low and we're just about 60 points for a new high for the year), so I am still expecting a correction to the TA or 50 day MA as soon as tomorrow. But this being a bullish W3, it has the freedom to extend and turn the market very overbought before any meaningful correction. So I wouldn't recommend being short expecting a market collapse (for those that assume we are about to witness a cataclysmic sell off) since all indicators are bullish or about to turn bullish. If the market was trading under the 200, 50 MAs AND its Trend Average then being short would make more sense to me. But for now, I am holding to all my longs until the market reverses the trend or we hit an extremely overbought spot.

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