Tuesday, June 26, 2012

Market Bounce

The market bounced as expected today and found resistance exactly at the 38.2% retrace of the X or W1 wave at 1324. So now we'll see how much more strength this bounce before resuming another bearish wave to test the 1300-1310 level which so far has held up fairly well despite several bearish attempts. And if the bearish wave fails to beak this support area we will most likely then test the 1363 wave high again. The market looks undecided at this point which actually favors the bullish case as long as the over all trend is positive. Perhaps the market is waiting for more EU information before making its mind.

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