The market certainly doesn't like to make things easy. Stretching the possibilities of where things could go just enough to make everyone doubt their positions. Well today's price action did just that for the bears. The rally off of the lows has now reached a 50% retracement, which I would consider to be the maximum allowed in a wave 4. While my bias is still to lower prices, the bulls need to be watched closely tomorrow. Prices do need to get above 1004 to change my bias back to a new high as even with a little more rally this could still turn into a larger a-b-c correction. For where we are in the price action, the correction (if it is that) is still too shallow to be considered complete.
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Great info and charts.. I myself don't think the S&P will break 1000 before a larger downturn.. We'll see what happens!
ReplyDeleteLooks like it did. Isn't it great when the market pushes us to the edge of our analysis and often doesn't stop until we plead for mercy! Of course by then the market will move in your direction LOL!
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