Monday, November 7, 2011

Sideways Trading

The market seems to lack any downside impulsiveness at the moment.  Perhaps we are heading for a retest of the 10/27 high before another leg down in wave b, or perhaps a b wave triangle is developing.  In any case the decline from the 11/3 high to the early morning low in the futures looks like a zigzag, which suggests that the next move will be higher rather than lower even if it is still part of a larger corrective pullback pattern.  This is why I suggested last week that shorting this market would be an effort in futility.  We should have resolution before the end of the week either way, but the market looks higher overall.

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