Friday, February 13, 2009

Wave chart at 12:30 pm

Here is today's e-mini wave chart at 12:30 pm. I thought that support near 830 would hold, but instead the market put in a longer down wave which so far has carried to 825. My plan B in this situation is for today's range to equal Wednesdays range which was about 17 points. That would put today's low near 822.50 - the purple dotted line - quite near the high of yesterday's initial rally also.

However, once my projected 830 support was broken I sold half of my long position. My reason was simply that the market was not doing what I had expected and was trading below yesterday's close and today's open - not something I like to see when I am bullish.

However, I am still confident that the trend is upward. Weakness below 820 today or Tuesday (markets are closed in the U.S. on Monday) would mean that I'm wrong and that the market is headed below the 800 level.

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