I believe we saw a short term bottom on friday and that an upward movement has already started. I expect all markets tomorrow pull back and provide us with cheaper prices to buy. I have SP500 target between 1225-1250. My scenario will get more possibilities if 1200 is broken and maintained. More detailed work to come soon on this new scenario!
update 29-11-2011
SPX has found resistance at its previous support 1200. Either way a pull back around 1180-1170 is expected. The decline from october highs still looks a 3-wave correction that ended near 61,8%. Long positions after a correction are favored.
DAX is like SPX. A 3-wave decline from the hghs is not impulsive. Yellow line is low of wave 1 that must not be overlapped if we are in wave 3 down. If overlapped then more scenarios will arise. Dominant scenario still is the A-B-C correction to near 61,8%.
In a few words, for the short term I prefer buying the pullback with a view higher.
No comments:
Post a Comment