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The Bulls Never Quit…

By Red, on January 19th, 2010

Raging-Brown-Charging-Bull-Running-With-Smoke-Coming-Out-Of-His-Nose

Looks like we got our back test… only a little higher then I expected.  Regardless, I don’t see it going higher tomorrow, as there are too many earnings reports coming out that should force it down.  But, here’s the problem… we are still inside this rising wedge, and coming very close to the end.

Part of my forecast over the weekend is based on a breakdown of the trend line to about 1115 SPX, and then a final push higher to 1160-1180 for the back test, which would reach the conclusion of an elliottwave pattern up.  Different chartists have different levels, but they all complete somewhere in that 1160-1180 range.  The Bulls want this area badly, and they might not drop out of this rising wedge until they get it?

If the market doesn’t fall to 1115, over the next few days, then I’m going to have to move the time line up from February 9th-10th, to January 27th-29th.  It’s all about reaching the finally top… wherever that is?  Could 1160 or 1180, or somewhere in between?  But, once it is reached, the sell off will start.

So, if we breakdown out of the wedge before reaching the 1160-1180 level, then I’d expect a back test to occur, which should push us into the February 9th-10th turn date.  If we stay in this wedge until we hit that target level, then I believe we’ll turn down early.  We’ll see…

Red

Still In The Rising Wedge...

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