Friday, 29 June 2012

S&P in wave C up

Markets yesterday left the surprises for the end. If you are one of the lucky ones to have followed me in twitter and followed my view that we were in wave B down, you would expect an upward move to follow above wave A (1335). The first bearish scenario that we discussed in previous posts is going according to our view. There are many chances that wave X has ended and a new upward move with target above 1362 is underway. My secondary scenario had expected this upward move as part of  wave C of 2 relative to the impulsive wave down from 1362.
During premarket S&P futures are up more than 1,4% and this puts the cash price if the market opened now at 1348. This is a little bit above 61,8% retracement. You can choose to sell here with 1362 as a stop or wait for the market to break 1310 and be sure that the market is entering a 3rd impulsive wave down.

If you were based on the long side you still should have 1310 as a stop and hope for the market to break 1362. Yesterday's move gave a great chance for bulls to enter long positions so close to their stop. Depending on your longer term view, you can adjust on how you trade according to the price levels I give you.

Thank you for taking the time to read my post.

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