Saturday, January 29, 2011

Friday Re-Cap


A 5-wave rally from Wednesday's consolidation low that was followed by end of day decline at the end of Thursday's trading session was a setup for two likely possibilities for Friday trading action:


1. A larger ABC decline, to be follower by another trending upleg, or

2. Trend Reversal Decline that should retrace the whole prior upleg.

It became fairly obvious very quickly, as the market opened for trading on Friday, price action was telegraphing a trend reversal, and short-sell were the correct trades.