Wednesday, April 13, 2011
Stocks Still Floating Around, but the S&P and Euro Declined in Five Waves
Volume is still light and stocks continue to flop around directionless. However the wave structure may give us a clue as to a what the larger trend may be.
The S&P eeked out a 5 wave decline suggesting the larger trend is now down. Unfortunately it's occurring with weak volume and mediocre internals to the bearish side. So it's not a convincing picture....but it rarely is I guess. The evidence is strong enough that the rally has exhausted, so I'd short rallies with a stop just above this week's high if I was an aggressive trader. The market is trading heavy overall, and with a 5 wave decline on our hands, a bearish bias in the short term is warranted.
Learn Elliott Wave Principle
The euro has also declined in 5 waves, although more sharply and convincing than the S&P. Here too I favor the short side.
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.