Wednesday, December 9, 2009

Ok...nothing changed...

Essentially nothing changed today...instead of wave 5 of 1 truncating, we put in a full wave 1 down today. So we are basically waiting for waive 2 to finish. It could have easily finished today, but we could see a gap up tomorrow to the 62.8% area before the wave 3 sell off. So my longer term forecast from yesterday still holds.
Vix can easily launch from the 20 ma. But we could also head to the lower BB band. MACD histo increased so I am leaning to the VIX hitting the upper BB.

In conclusion, its time to get short again for a near term drop. But its not time to go any where near a full short position yet.
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