Thursday, June 3, 2010
Wave (ii) Should Continue Higher
The market didn't do much today, so there's not much new to add from yesterday. The current wave (ii) may morph from a double zig-zag (WXY) into a triple zig-zag (WXYXZ), but I'm targeting the upper end of the 1105-1120 range for a possible finish to wave (ii) regardless. Today the major indices poked to new highs from last week as expected, with the Nasdaqs strongly leading the way. Despite today's somewhat flat move in the Dow and S&P, the market is still showing some solid bullish underpinnings. The market should continue higher in the coming days. The market overall has not done much other than slightly recover on the lows established last week, and then move almost sideways since then. If this continues, it shows how strong the downtrend is and how weak the bulls are since the only thing they can muster in a week of rallying off the bottom is a fraction of what was lost a week prior. It will also continue to help alleviate the strong oversold condition the market was left in from last week.
So I'm keeping an eye on the bigger picture with the chart above. The wave (ii) rally should continue to work higher at least into the 1105-1120 range in the S&P cash while staying below 1074. I'll add to my shorts as it works higher.
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.