Wednesday, July 14, 2010

Nothing solid yet for the bears...

...well after reviewing the charts I see another push up tomorrow as very likely with 1105 providing key resistance and our likely selling point. But like I said before, if the market holds on to the 1070 area, then the structure is very bullish, and the market should at least try and test 1160 if not the previous highs. The momentum indicators have been pushed significantly higher than I expected based on this count, which means this is either a massive head fake or just the appetizer for what is about to come.

I've put up the daily chart to show the doji candle for today's action. A move below today's low should ignite selling, but like I said, a higher push is likely tomorrow.

The hourly chart shows the wave 4 flat today with overhead resistance straight ahead tomorrow. Should be interesting.

Last, I put this chart up to show how you would have faired following my wave 3 entry technique based on today's prices. It would have kept you out of the many near breakdowns the market made on its way up to test the highs. It is interesting to note that the double top was also a 786 retracement of the overnight highs.

Best of luck tomorrow. I still have my stop at 1110, and I'll see how much I get out of this trade once the market drops below today's low (hopefully before it stops me out).
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