Shakeout

As I said on Friday, the intermediate term trend is still up. Whether or not this current correction turns into a deep affair awaits to be seen. My suspicion is that the Qs will hold up above the recent breakout of the January and February highs at 31.63 to 31.68 with perhaps a move down to 31 intraday. The Dow could easily see the 7500 area, but again I expect it would be a brief foray. Only a sustained move below 7483 in the Dow and 29.79 in the Qs would alter the intermediate trend.

This is the type of action that is needed to rebuild some bearish sentiment, but to bail out now would be premature in my opinion. None of my stops were hit today, although a couple came close.

On the short side, SPW has set up nicely for a quick hit and run short trade with a target in the 28 to 30 area. However, exit on any solid reversal above the target zone.

Oil looks as though it is in wave c of a correction that could last 1 to 4 more days before the uptrend resumes.