Monday, October 5, 2009

What a difference a day makes...

Price continued to bounce today as suspected, but the bounce went further and is approaching the zone where it is no longer a bounce but a move to new rally highs. Price should stay below 1045 for the bearish count (unless this is subdividing into another 1-2, but that won't be considered until we get a wave 3 the bears can be proud of). The move off the lows, however, is hardly awe inspiring and so far resembles nothing more than a bear flag unless price can find its sprinting legs tomorrow and get going.

Until then, I'll continue to watch for price confirmation. No need to get aggressive on the short side until the bulls confirm that there are no more buyers.


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