Friday, December 17, 2010

Correction started...but how far?

We had a confirmed completed wave 5 pattern on Wed. Yesterday gave us a rally back to the 786 retracement, and it looks like the market is rolling over from here. We need a complete bar below the 8 SMA to confirm.

Now, this doesn't mean the bears are in control...yet. If the bulls can hold the 1220 area, then they are in a great position to really push this market higher. If the market drops to the 1200, then the bulls are hanging on a cliff with the bears ready to snap their fingers. A close below 1170, and we should have a more prolonged down move if not the return of the bear.

Best of luck!
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