wayward's - exaggeratiom of emotion friday, page-6

Well it is all very interesting isn’t it. A little down day is perfect.

So to review the situation. The SPX achieved my first target box of 1240 to 1250 – admittedly faster than I had anticipated. This area coincides with the apex of that little triangle that we all sweated over for a couple of weeks - well I did. As mentioned yesterday morning, looking at my charts, it did look as though, short term, they might have got a bit overly exuberant in New York so we need to do a bit of work here.

The opening in Australia was also overly exuberant leaving lots of gaps that I believed the market would need to come back and have another look at. But goodness me I am not going to join in the discussion of what percentage of gaps will or won’t be filled – they just don’t look right!

But the important question is whether the markets have put in a sustainable low. At the moment I think so but we do need to concentrate on the patterns in New York simply because where this rally stopped.