Monday, February 21, 2011

2/21/11 - ES

ES

As the US markets are closed, the world markets have finally decided to reactive negatively to the situation in the Middle East.

I say finally because this shouldn't be new news. The unrest elsewhere outside of Egypt should not come as a surprise to us. This just may be the catalyst the market needed to take a break. Maybe they just read my blog post on Friday and decided to follow through with my count ;)

I know several bears will be excited by this but I still say they should be cautious. Just as the Egyptian situation provided a dip buying opportunity, this one may very well present another one yet again.

Don't get me wrong, I am mindful of the bear count calling this as the end of P2, however, the burden is on that count to prove itself. That burden is pretty big.

My primary count calls for minute [iv] of Minor 3 to establish itself. Is ES telling us the market is beginning this leg? We shall see... Keep an eye on that red trendline.
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