Tuesday, May 17, 2011

Looking For A Bottom For The Correction

The action today was positive as markets rebounded off of the 50ma to close above the open.  For all of the fear created from the HP memo, Intel and Dell presented a different picture.  While it may take a few days to complete a reversal I think today may have been the bottom.

The PPO of the equity only put/call ratio reached levels associated with pullback lows since the beginning of 2010 today, and the McClellan Oscillator also came very close to its April low.

In the Dow the sideways movement over the last two weeks looks very much like a b wave triangle, which suggests the decline is a 3 wave pullback which may have ended today.

I am preparing for one more push to new highs.  Depending on its character, that may be it for a while.

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