Posted on November 3rd, 2009 at 3:30 PM
We already know that the major indicies have been showing potential trend reversal tops (i.e. Elliott Wave 5) since mid July. Even with this technical info the market keeps making new highs leading traders to wonder, "Is this a new trend, or do we still have a chance to change direction?" In our mentoring sessions I have been telling traders that I am cautiously bullish on the Daily timeframes and will take advantage of any buying opportunities I see. The reason I use the term "cautious" is due to both the Weekly Charts and the Daily charts showing potential turns lower. I will remain in this cautious state until we take out a major low on the Daily chart (which we can talk about in another post). But in the mean time let's look at our Weekly Charts and show while we are still cautious.
