Thursday, January 6, 2011

Bullish Count For Moody's

As much as it pains me to say it, because I frankly don't think they deserve it, the stock chart for Moody's Corp. (MCO) is showing a very bullish wave count.  It appears that MCO is embarking on wave 3 of (C) up with a minimum target of 40, but a possible target as high as around 55.  However, with the broader market possibly ready to roll over near term, it would be advisable to wait for a pullback.  If the low noted as wave 2 is breeched then a deeper pullback in wave 2 will likely be seen.  Thereafter, wave 3 up should follow.

The Qs did in fact top this morning at 10:45 about 2 hours and 15 min after yesterday's intraday post, and while some markets appear to have topped, the Qs appear to be forming another triangle, so another pop higher will probably be seen tomorrow.   Or course, a powerful thrust higher tomorrow would throw the bears completely on their heels and possibly show the market as being in wave [iii] of 3 of (C) higher instead of wave B.  I don't think it will turn out that way, but we shall see soon enough.

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