Saturday, July 14, 2012

Strong rebound

The market made a strong comeback today by rallying all the way to the trend and closing right above it. Given the strength of the rally, it could signal the start of a 5 wave move to the upside but it is premature to count it as such until 1375 gets taken out. However, looking at the daily chart one can see a series of higher highs and lower lows so the market looks like it is going for 1422 and I expect it to do so as long as the intermediate trend remains positive. Therefore, I continue to be long and hedging only at bullish extremes.

Have a great weekend!

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