Tuesday, April 6, 2010
New S&P High Makes 5 Waves up from Triangle, Reversal Anytime Now
The above two charts are just updates from yesterday. The S&P made a new high today, making a 5 wave rally from the triangle possibly complete today. The fact that the Dow failed to make a new high as well adds to the evidence that perhaps a top is in right now. Even if the market surges higher again to have the Dow confirm the S&P's rise, it still leaves us with a 5 wave rally from a triangle which means a reversal is right around the corner anyway. The short term target is 1171 in the S&P cash index, but judging by the very weak 5 wave thrust rally, I think the decline will be much bigger and stronger than just dropping to 1171. If I see good evidence that a top is confirmed to be in and there's a good opportunity to enter then I'll get aggressively short with a stop at the highs on the year.
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.