Wednesday 11 June 2008

Market Hesitates With Inside Day Price Action

The cash S&P500 formed an inside day yesterday as the bulls continue to keep this market in touch with the long moving average (green on the chart). This price action indicates that Monday’s low is a third wave (iii’) from the May 29 high and we are now in wave (iv').

If this interpretation is correct the market should not go above 1370.11 before 1350.62 is broken.

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