Yesterday was a sly day. It didn't seem like it finished its pattern to the downside before ripping higher. I think the entire move was fake.
I'm encouraged by the futures this morning, which I feel add to my view. If however, the S&P rallies to a new high without getting below yesterday's low, I will most likely be wrong and won't have as much long exposure as I'd like. Too bad. Now is not the time or the place to be greedy.
I'm looking for the S&P to get into the 1238-1240 area, possibly lower, but not below 1226.64. I'm looking for a reversal there and a rally to 1300 where it will end. At that point the market would be vulnerable to a massive sell off. This is basic Elliott Wave here, nothing flashy. But if it's correct, the risk/reward at 1300 would be considerable. The same could be said if the S&P gets below 1226.64.
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