Thursday, October 11, 2012

Correction over or W4 counter rally?

The market technically reached the 50 day MA in after hours yesterday and today's bounce should be a W4 counter rally. However, since the C leg is technically equal to the A leg (if we count afterhours), there is a possibility of the bounce today being a bullish W1. Whatever the case, I posted the intermediate count on how this correction from 1475 looks like. So far it looks like a "Flat", which is just consolidation before another rally. But we'll have to see if the the market wants to correct more before another attempt at another high for the year. Emerging markets are looking very strong and that suggest more upside to come after the correction is over.

I almost hedged today but the market did not make it to the TA, so I am in wait and see mode. I don't want to get caught in a bullish W3, so the leg tomorrow should bring some clarity.

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