Wednesday, July 15, 2009

Massive up day, but the bulls still have work to do

Ok, on days like today you can get killed if you aren't in sync with the market. Today was one of those days for me. One to learn from. A massive gap up and almost no retracement the whole day! I believed we were going up from the start, but I thought for sure we would get at least some pull back at the open. Oh well, that's why stops are so important!

Now, where do we go from here. Certainly there are still bearish counts that can be shown, but for the most part I try and show what I think is the favored scenario when there is one. So that is what I'm showing today.

However, I want to make clear that a close below SPX 911 would not be good for the bulls. If they are going to take this higher they need to hold the ground they've fought for and take some more. After 3 solid up days, the problem is that the market wants a rest. But too much rest from here and the bulls could get run over. The bulls have now taken the market to where it consistently lost ground in the past.


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