Short update:
Fridays non farm payrolls were disapponting. S&P futures broke down and fell below recent lows and for the first time for some time now we can observe lower lows and lower highs. However we will have to wait for the market to open on Monday and see a confirmation of the index to break and close under 1390. European debt yields are rising once again and the fear from europe regarding the debt crisis is coming to surface again. The wave scenarios are still not clear yet but bulls still have chances and won't give up without a fight. We could still be in a 2nd wave of the 5th or a larger 4th wave if 1340 is broken. However bears have their chances too if this is already the top they were expecting. Either way I would sell every pullback or any break down of prices with a stop at the previous high. If the highs are broken the market according to my wave analysis will provide with a great thrust upwards that could compensate any loss from shorting this market. If you feel this is just another dip and a buy opportunity I would suggest buying only after seeing 5 waves up or as close to 1340 as possible. The next few sessions will provide us with more info in order to eliminate some wave scenarios and icrease chances in other ones. Will try to update accordingly.
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