Thursday, February 11, 2010

Rally Probably Complete

Instead of moving below yesterday's low the Qs held above it today forming a very clear running triangle. A sharp C wave rally followed that lasted the rest of the day. We may still see a minor new rally high tomorrow, but it should be down from there. I show an alternate outcome that allows for a double zigzag to form. If it does, then the next target is 44.82+/-.

Given that the Tuesday following 3 day weekends is often an up day, the alternate view is a fair expectation, but coming under 42.76 on volume should greatly reduce that chance. As mentioned in my earlier post today, I am now half short the Qs from near today's high. Trader's can use a number of other signals to add to positions. I will be looking for a 3 day low coupled with a turn down in the MACDH.

If time symmetry plays a role, we should expect a low on March 3 or maybe slightly earlier.

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