Today is a perfect example of why confirmation is so important. You can get all excited about a particular market direction, but without confirmation you may find yourself being a bagholder. We obviously are no longer on our march toward 1050 as selling dried up near yesterday's globex lows and the bulls took over. As of right now this is the only bullish wave count I could come up with marking the last several sessions as a running flat wave 4 correction. While it is interesting that selling came in at the 78.6% retracement near the end of the day, it didn't have any follow through, and price quickly overcame that level during the asia session. Should we open below today's high and never eclipse it, then we should have a very swift move down tomorrow. But for some reason, I think the bulls are done with us yet.
I've outlined on one of the charts where the most obvious price extentions intersect with key trend lines. These are:
- 1106/1107
- 1114
- 1126/1130
I would put the least amount of weight on the 1114 area as it seems that we are either going to die at a slight new high or move vertical in a blow off top.
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