Tuesday, May 10, 2011

Still Looking For Another Pullback

I think today's rally was probably most or all of wave b of (ii) up.  Wave c of (ii) down should follow by the end of the week if not tomorrow.  But overall the action is bullish as the Qs closed within 0.15 of the recent high and the SP500 closed solidly back above the February high.  A number of leading stocks performed well today but the action was not enthusiastic, but not many stocks declined on heavy volume either.

I continue to look for short term setups with an eye toward a high in mid to late June.  As an example, WCRX broke out today, unfortunately it was on light volume.  We will see if it follows through.


Anonymous said...

The MACD STO and RSI are showing bullish through May.

Anonymous said...

Yes and they can remain bullish even with another pullback, which suggests we should continue to look on the long side for short term setups.