Monday, June 8, 2009

No bearish confirmation today

Even with a gap down, the bears ran out of steam by the end of the morning session. Unfortunately, the move off of the highs does not have a high confidence impulsive look to it, which we will need to have any belief that we will reach new lows.

Today's lows will be key for the future though. If they break tomorrow morning, then we should at least get our very large 'B wave' correction. If not, we should see new rally highs by tomorrow morning. Any selling that happens needs to be contained to today's lows (at least on a closing basis) for the bullish scenario to play out (a move to 1000). Should price get rejected at a new high and immediately break today's low (and stay down), then that would be a very bearish signal. Until then, we continue to have a series of higher highs and higher lows off of our break out.


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