The bulls actually took control today and the market regained most of its losses and the DOW managed to close above 10,000. I took a second look at the chart, and 9800 (approx) was a major support point that is crucial. Its a good thing that the market found support. Of note is that the volume increased considerably over yesterday. This is a good sign and we are looking for a follow thru day (another big day with high volume) to confirm a potential trend reversal. Sprint showed a lot of strength through out the day and closed up a lot after the market reversed direction. At this rate we will hit the $6 target relatively soon. Wow, only a couple of days have gone by and greed and fear have already started battling it out. Should I sell when the stock hits 6 or should I wait to see if it will make it to the 9-10 range? Should I sell at 6 in anticipation of a pull back? Decisions, decisions, decisions... I am going to have to take another look at the rest of the market to see if any other stocks are worth risking some money for. I am still skittish but do expect a mini rally to take place. Will continue to wait and see for now. I may not have many updates for the rest of the week.
Additional Thoughts: Pull backs generally exhibit a 5 wave structure. Although 3 wave pullbacks are possible, generally after a 5 wave run up, you will see a 5 wave pullback (A, B, C, D, E) before the uptrend resumes. At best, we are entering wave D, at worst we are just entering wave B. I do expect to see a bullish move in the market over the next few days. But I wouldn't bet that the trend has reversed yet until we see some more evidence.
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