The SPX is about to reach strong resistance at our target 850 for the big A wave and as we are entering wave 5 next week expect wave B to kick in for a test of the 740 area within 2 weeks. As we do clearly see by price action which move has much more momentum as the Nov. rally had and the short interest at the NYSE is rising therefore leaving space for more short covering. Since we are now overbought and entering earnings season some setbacks are very likely short term. This pathetic comments the recession is over in the media recently is part of the propaganda tribute to this whole market manipulation. Stocks are very expensive right now but we have a good chance here for the ones who did not sell on the way down to get rid of stocks at decent prices - besides traders who ought to be long but should start to lighten positions as we rise towards 850 SPX starting today.
Thursday, April 2, 2009
SPX tech update - nearing first target at 850
The SPX is about to reach strong resistance at our target 850 for the big A wave and as we are entering wave 5 next week expect wave B to kick in for a test of the 740 area within 2 weeks. As we do clearly see by price action which move has much more momentum as the Nov. rally had and the short interest at the NYSE is rising therefore leaving space for more short covering. Since we are now overbought and entering earnings season some setbacks are very likely short term. This pathetic comments the recession is over in the media recently is part of the propaganda tribute to this whole market manipulation. Stocks are very expensive right now but we have a good chance here for the ones who did not sell on the way down to get rid of stocks at decent prices - besides traders who ought to be long but should start to lighten positions as we rise towards 850 SPX starting today.
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