The impressive reversal of the NDX and the overall strength of the market yesterday implies that wave A is not over yet. The decline from mid-May in the DOW and SPX has a 38.2% retracement at 117200 and 1293, which should be reached before a counterwave will occur. Nevertheless, today and tomorrow might be a bit tricky. Plenty nervous shorts are out their waiting for a pullback, which will come at some point a retest the lows, but the timing and price magnitude might be painful - but a little pullback later today is very likely lasting into tomorrow.
Wednesday, July 23, 2008
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