Wednesday, February 4, 2009
Short now from 4439. Stop 4505.
The last 5-wave rally (15 min chart) appears to complete a larger 3-wave rally (see 1hr chart below). My MA is rolling over so that is my signal.
That said, a 3-wave decline that does not break 4300, and especially if it holds above 4150, leaves open the possibility of a dramatic move to the up-side to break the trend-line on the weekly chart, because of the 3rd-of-3rd wave phenomenon. I will try to alert that possibility here if it develops in the market.