Tuesday, October 18, 2011

Still Looking For More Pullback

When a pullback or correction begins there is no way to know what form it will take.  Today the high for the Qs exceeded Friday's high, so the new high could end the first leg of the rally, or it could be part of a running triangle or expanded flat.  The fact is that the market is extended and the most likely next move is a pullback to the moving averages either by going down or moving sideways.  Of course, the market could continue to march higher, but we are due for some give back.

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