Thursday, November 1, 2012

50 Day MA challenge coming up

I posted yesterday the potential head and shoulder's formation targeting 1430+ and today's price action confirms that is where the market is headed. To be more specific, I think the market is going to mount a challenge to the 50 day ma at 1434 and that is where resistance will hit. If the market can overcome the 50 DMA then the market will be able to turn bullish again short term. And my gut feeling is that the market is going to turn bullish again primarily because of how Europe and Asia are trading, so we'll see if that theory proves correct. I missed buying XIV yesterday (it went up almost 10% today) but I'm enjoying my HK/China longs.

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