Tuesday, March 31, 2009

Pullback still not done

We were busy with work all day and sadly had no time to trade or watch the tape except at the end of day.

Recap & Stance:

The pullback doesn't seem finished. We may have to revisit the scheme of things if SPX closes above today's high (~810). Until then, we are at ease with labeling this as a Wave b rally in a Wave 2 move => we still are rooting for 760 on the SPX . We may get some continued strength tomorrow morning, but we expect wave 'c' down to kick in shortly either tomorrow or on thursday.
Intermediate term, we are still watching for our turndate, the 8th of April (+/-).

Silver seems to have painted a nice long tailed candle. Gold painted a doji, so it appears the bears are unable to push this lower. The rest of the week will give a vital clue if we need to cover our short positions in the precious metals. As of now, we are just lowering our buy stops on slv.

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