The collision of global markets and social mood

Thursday, December 27, 2012

Trying To See Reality

Futures have remained within yesterday afternoon's range in the overnight session. This would be an inside day if it occurred in the regular session. It hasn't rallied but it hasn't broken down.

1425.06 has my eye. Rallying above that spot would put pressure on the bears. Below 1416.43 is still quite possible, but I would be looking to be a buyer should it happen, using 1411.88 as a stop.

Below 1411.88 opens the door to a deeper retracement.

The market has a lot of work to do if it is going to completely break down -- as forecasted -- from current levels. I'm seeing the same tired, worn-out, perpetually bearish wave counts from professional Elliotticians while I'm seeing a great deal of excellent Elliott work on Twitter and Stocktwits . . . for free.

I'm as much of a bear on the market as anyone, but I try to see the reality. And the reality that I see is that until 1266.74 gets smashed, new highs may occur over the next few months.

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