Over the last six months we have been talking about how the market has .35% symmetry support. If you look at the DOW chart you will see from the March 09' low to the May 10, 2010 high we had a .35% pullback and then overlap the entire wave and the last low we made at the 10,700 was also .35%. On the last low we traded through it but never closed below it.
If you break down the 60 min chart on the current wave the low today was right at .35% and we bounced.
Right here I would say most people are short or thinking short looking for a big move down. Maybe that happens maybe it does not but I would say it is way to early to be short seeing how the trend is still up and we are bouncing off the .35% support that has held the market since the 09' low.
It would make sense for the DOW to pullback into the 11,700 area before going higher but I would not be suprised if we get a short squeeze from where we are right now.
We have a list of stocks we are watching and if the market opens strong we will enter tomorrow long.
Happy Trading,
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PS. The 76% Square caught the 12/5 high -
http://wwweminischool.wordpress.com/2011/12/06/nq-76-square/
PSS. We are closing our Private Client Group to new members Jan1st – http://wwweminischool.wordpress.com/2011/12/11/timing-is-running-out/
