Tuesday, December 16, 2008
Market Rally is on Pace and Should Accelerate; Dec. 16, 2008
Nothing new to really report this morning. The market is rallying into the Fed meeting at 2:15 EST as projected. Again my target for the S&P is to get somewhere into the 950 range before topping and selling off sharply. The quicker we get there the better in my view. As long as the market continues to follow my projected path within the parameters allowed the more confidence I have that my wave count and analysis is correct. And of course, that means the maximum amount of profits with minimum risk. If for some reason the market does not continue this rally and it sells off sharply, breaking new lows and especially 820, then something else is going on that I'm not aware of and it will be tough to position myself for that. So all indications for now point to higher levels over the next few days/weeks.
The above 15min chart of the S&P shows that the rally today broke the previous lows and eliminate any realistic chance of counting the decline starting last week as a 5 wave affair. Therefore the decline must be corrective, and new highs should be achieved in the short term. Again, the 950 area in the S&P is the target. As the market rallies higher I will adjust the target area and start establishing short positions.