At the moment I think the most likely scenario for the current currection is a double zigzag. We are probably near to completing wave B up and wave C down will probably take an extended period of time, possibly into early June. Even if the current advance completes as a 5 wave impulse, we should expect a considerable amount of time for consolidation prior to a continuation of the rally.
For those who follow Investor's Business Daily, today's action did not count as a follow-through as it occured on day 2 of the rally and on lighter volume than the previous day.
I will not be looking to add any new long positions from this point forward until we see a pullback on lighter volume that holds above the 5/6 low, and I certainly would not add new short positions until we see that the current rally is going to fail on increasing volume.
No comments:
Post a Comment