Thursday, December 9, 2010

Thursday's Update

Today's large gap-up open but still inside the trading range was an indication that we would likely have a non-trending type of day, providing us with a great opportunity to fade the opening gap by going short near the open, targeting gap-close and FT Pivot. NQ promptly decline in a 5-wave pattern down to pivot before reversing up.

Today was the third day price has been trading in likely wave 4 consolidation. Prior consolidation wave 2 lasted about four days.  If current consolidation is in fact wave 4, price should rally above wave 3 high today or Monday.