Daily Analysis

By: TheWaveTrading | Thu, Feb 9, 2012
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I don't have much to add to what I have mentioned yesterday.

I reiterate:

"..... the combination of extreme overbought readings + an overly mature up leg + a converging structure of VIX etc ......should "spark off" a sudden and sharp move to the down side. Probably a catalyst is needed."

The weekly candlestick, which will be completed tomorrow, is suggestion that price should be setting up a potential top.

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I am confident that the up leg off the December 19 low should not have much more upside left, the weak McClellan oscillator and the 2 consecutive daily Spinning Top candlesticks are suggesting that the up trend is losing steam.

I maintain the idea that the overdue pullback should be a wave (4), within the Zig Zag, which began at the October 4 low that will probably fill the gap at 1289.

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