Last week, I wrote an entry “S&P 500, The end of Elliott Wave” Just before the rebound of the stock market world wide. Until today, the markets have up almost 10%. and after last night, Both S&P 500 and Euro STOXX 50 is approaching 200 days moving average. As the trading volume is slowly picking up, I believe it is very likely to break through and create a short term momentum.
Of course, Euro Debt concern will certainly come back to haunt the markets in the near future, so personally, I think it is very important for people who are in-the-money to lock the profit and who deeply out-of-the-money to reduce their equity holdings. You can always buy back in the near future.
