JSE Correction

[Ninja]

Today the JSE and TOPI displayed classic reversal day patterns off resistance. Both are OB to the extreme. If I were out of this market this would be a trigger with confirmation from RSI and Stochastic to enter a short trade due to reversal off key resistance (stop would be close above resistance). Of course things could go either way, but a short in this position gives you a probability better than 50/50 of being correct, and if you are wrong the stop is close and painless. This trade has low risk, decent reward with strong confirmation from the indicators, price and resistance levels. If the Dow closes in the red today this may be the beginning of the short correction everyone has been waiting for.

[#2]

The dow closed in the red yesterday and yet our market keeps running. Looks like all the resistance is going to be broken.

[#3]

I see resistance at about 21700 on the alsi - you agree?

[Ninja]

24000, currently trading at 23806. Patience gentleman, the correction is comming.

[#5]

I see - I was looking at the TOPI chart, you're referring to the ALSH chart - basically we agree...

[Ninja]

yes mammon.....everyone is waiting for the correction which is why it may only arrive next week. I am however sure that after this minor correction we will rally into the year end, before we see one more test of the march lows.....thats how I see it anyways...

[#7]

Ninja you calling the market 6 months ahead.I cant tell whats gona happen this afternoon.I taught that after yesterdays bank results we wouldve seen a bigger pullback,but was wrong.But I do see a correction in the short term too,we all see it,but the market knows best,can stay at these inflated prices for longer..Best not to be caught in long trousers should the sun start shining IMHO

[Ninja]

I agree newbie...the nice thing is that the market is on strong resistance so stop losses can be placed with minimal pain should resistance fail. I personally feel the pullback will only arrive next week. All earnings reports have been positive but volume is declining and momentum appears to be slowing. Who knows...the market will tell us.....

[#9]

Yip,from my little experience I noticed that the market tends to go against whatever every1 expects..

[#10]

It looks like it's starting to test resistance now...

[#11]

Hm... Wonder how long this rally will last!!

[Ninja]

Mammon.....Dow resistance is 9100 going back to q3 2002....if this level is broken tonight the rally could go on for some time. Get ready to bail if you are in short.

[#13]

Patience people..

[SimonPB]

dow theory buy last nights close .. heading to above 10k ..

[Ninja]

Simon please explain....the D-Tran seems to be making a lower top than the D-IND...what has given the trigger to buy?

[#16]

please elaborate...

[#17]

the pullback starts on monday..

[M0nar3n9]

Gaaa!, been waiting for a drop since ... last week!

[#19]

The pullback still gonna happen?

[#20]

or only in certain sectors of the market?