Friday, January 16, 2009
Large Strong Rally Phase Underway; Jan. 16, 2009
The market rallied too much since my previous post for the count to remain valid. It's clear the decline was impulsive, but the exact labeling was uncertain. So I relabeled the decline to show 5 waves down complete already. This is probably a wave 1 at some degree. Which means that a strong fierce wave 2 should occur now. This lines up perfectly with Obama coming into office Tuesday, and the Obama euphoria carrying over to the stock market and causing a rally. But 943 in the S&P cash should not be broken or even tested. My projection in the coming weeks is shown in the 1hr chart above. I see a 1-2 week rally occurring to just under 900 in the S&P. I took off some of short positions yesterday and today once I saw the selling pressure alleviate. So I will add those positions back on as this market rallies higher in the coming days/weeks. Ultimately, 943 should not be broken, and the market will give way to a large wave 3 down. That will be the prime opportunity to make big easy money fast!
I'll try to identify a top when it comes, but I'm shorting this coming rally anyway.