ChartsEdge map for 1/28; and market comments

Market Map for Jan28

Posted: January 28th, 2009
Author: Mike Korell Filed under: One-Day Market Map »


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Looks like my thesis that the triangle would break out to the upside is "working" :) Traders (and investors) will need to look to whether this is a C-wave bounce before the markets roll over to go lower, or if it may lead to something more. I tilt toward the idea this is a C-wave (and maybe the 3rd wave within the C-wave), as you know if you have been following my commentaries including those this weekend about the triangle.

Today is FOMC day! so the usual shenanigans must be expected ... remember that the day following FOMC day is usually a better trade, so consider carefully if you are really going to dabble in intraday action today. Be careful out there, (happy trading IF you are trading), and in all events good luck and be happy all!

PS - below are those two triangle charts I posted here Saturday (with the label "Elliott Wave" - it's the bottom one that looks to be "working"), if it helps to understand what I'm referring to there. Many other Elliott Wave analysts apparently were expecting the "usual" move to the downside out of this triangle, which I referred to there, but pointed out that the indicators were telling a different story. Remember that breaking out of the triangle to the upside doesn't necessarily "answer" what happens after a bounce, i.e. whether we go above the January 6 highs ... and I've posted (most recently at my UBTNB3 site) my thoughts on the more likely Elliott Wave scenario for that in the bigger picture ... will see!)

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