Sunday, June 7, 2009

Initial target hit, let the market lead the way...

Well, some excitement while I was away. I certainly enjoyed the time off and look forward to another exciting week. It looks like we are once again at a key inflextion point in the market, and Mon/Tues should be provide us with the clues to where we go from here.

When I left I put an initial target of 955 on the table. We nearly got there on Friday and sold off hard. There are so many divergences setting up along with multi week trend lines coming into play at these figures that if we close below 920 from here, then I don't think the market will be able to recover. This would need to be confirmed with a quick break of 875. We should then to continue to move down to new bear market lows.

From an EW perspective, it would fit nicely with the triangle formation I talked about before I left (both with time and price).

However, if the market closes above 955, then I think 1000 is the next target. We should get an answer tomorrow or Tuesday at the latest.


  1. Welcome back Rich,

    we missed you here....

    now that we gapped lower-whats next for you


  2. iv - sorry i was out and couldn't respond. The bears couldn't hold the price down for more than a few hours. You'll notice that we never got below 920, which I stated was a key level. We need to break today's lows to get any real selling going. We'll see tomorrow.