Will tech determine market direction in the next couple days?
We'd been watching the pattern of the broad correction over the last four or five weeks. In many cases it seemed to be developing a typical three-wave pattern. At this stage, though, the buying opportunity seized on today is too obvious for our liking. This year, the markets' trends have been extending further and lasting longer, at least as far as our expectations have been concerned. So even though we expect this correct to materialize (it did), and we are open to a renewed rally to new highs through year-end, we have to be careful there's not a bit more downside still to come.
We'll keep watching the Nasdaq.
Market Vitals | 16 October 2012 [http://blackswantrading.squarespace.com/storage/market-vitals/101612_mv_nasdaq.pdf] ~