Thursday, January 26, 2012

S&P 500 ~ Intraday Update 1 ~ 26 January 2012

Since the bounce at the support area around 1200ish mid-late December the SPX has been in a solid uptrend. As long as we stay in this channel you shouldn't even think of going short. Rather stay long and enjoy the ride up... it's as simple as that.

As you can see in the chart I added a tentative wave [iii] so we could see a small correction late January/early February. The uptrend looks very strong though, so, I wouldn't short just because there is now a wave [iii] at 1335...

Maybe you remember the big picture post I wrote about three weeks ago. If not, shame on you! Go and read it again: : )

Since the market just kept moving higher the bullish count looks now pretty good. And as long as the SPX stays above 1265 it's my preferred count. So, at worst if you went long around 1270 earlier this year you'd get stopped out at break even (but you probably went long earlier or you already sold some of your longs this week so you'd be up even if you get stopped out at 1265ish ; ))