Tuesday, December 8, 2009

Ok some targets...

Tomorrow I expect a pop in the morning to finish off wave 2 around the 62.8% retrace setting up a potential 1-2, 1-2. The red area is the first target. Its the most bullish of the correction trendlines.
Above are three targets, the first is the same as in the first chart. The next two are less bullish correction areas. The last dot is consistent with the last two pullbacks we have had.
The targets finish off minute wave 1 down. Then we would get a wave 2 up (Christmas Rally) up to the 109.5 to 110.75 area in January followed by a large wave 3 down.
The VIX is tricky. It did not pierce the upper blue trendline. In fact it looks like it wants to head back down (market back up). The only think we have going for us is that the MACD has hooked up on the daily.

So I am looking for a pop early tomorrow followed by more sell off.
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