Tuesday, July 6, 2010

Hardly Compelling

While we saw a positive close today, the action was not very compelling as it appears to be developing as a complex upward correction of some sort. That could change with a strong one day rally that closes well above today's high as the fledgling pattern could morph into an impulse. It really does depend on tomorrow's action. The longer it takes for this rally to get going, the lower the expected rally target will be. Even so, if we get a MACD buy signal I will be taking it on the positive divergence. At least we have a setup now for a follow-through day. A 1.7% rally tomorrow or later on higher volume than the day before will qualify.

BP continued its 4th wave rally today, while GOOG needed to retest its low again. GOOG should begin its rally soon.

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