Sunday, March 7, 2010
S&P Finishing a Thrust from a Triangle
The S&P did nothing to make me think I should take a bearish stance. But the rally from the 1086 area us looking a bit exhausted technically, and the triangle in the 1120 area suggests the current rally at the end last week was a thrust which will be reversed shortly (click here see my chart projecting the triangle thrust last Thursday). The subdivisions of this proposed thrust appear complete, or very very close to being complete. A return to the apex of the triangle around 1120 is in order once the thrust upward is complete. If we get some follow through with an impulsive decline beneath that level, then I'll look at other technical indicators and internal data to see if it supports a resumption of the larger downtrend, or if it's just a correction before charging higher. So again, I'm left with waiting to see the next decline phase start so I can better orient myself to where we are in the larger trend. I'm neutral in the short term at this point as the rally seems a bit too tired to start to get long, and there is no signs of weakness yet to encourage me to get long. So I'm standing aside, waiting...
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.