Wednesday, December 1, 2010

Not So Fast!

While the percentage gain today was impressive, I have not found any major stock indexes with higher volume than yesterday which means that today's action did not qualify as a follow-through day. It does appear that we may see at least another short term rally high before this upward correction ends, but it still looks like some sort of upward correction - double zigzag for the Qs, expanded flat for the Dow, etc.

Of course, the descending bearish wedge pattern was invalidated. Even so, I am seeing alot of large cap stocks that have completed impulse patterns and are ready to correct. I suspect this market will try to hold up until early next week before another leg down gets underway. So far, the 4th wave scenario is still on the table. We'll see next week if it stays that way.

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