Wednesday, January 19, 2011

Wavey

Do we have a top for this wave? ..... Maybe.

But lets consider a few things:

1) Max pain for the SPY is 126-127 and OPEX is Friday. That would be a few points down from here
2) We have daily MACD divergence. A down move the next couple of days would confirm it.
3) Assuming it follows that, then we would have the first red weekly candle in 8 weeks.

A bunch of if's (as always).

But if this is a top, I would expect a ~10% pullback, based on the wave count I have been showing recently. I have identified a few support levels.

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