Wednesday, November 18, 2009
Possible Bullish Triangle in S&P About to Explode Higher
Just a quick heads up. The sideways consolidating action in the S&P looks like a triangle which occurs in the 4th, B and X waves. This would most likely be a 4th wave triangle which will be followed by a 5th wave "thrust" to new highs. Thrusts are terminal moves are quickly reversed. A break of the wave "a" low at 1103 would negate the triangle and the short term bullish potential. So hypothetically if I were to do a short term short position, I put a sell stop below 1103 just in case the triangle scenario unfolds. Or if I wanted to get long I might go long now with a stop just below 1103. But I'm still short term neutral myself, until the market gives evidence that a top is in, at any degree.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.