TSE, March 9, a year later.

TSE March 9 2010

About a year ago we mentioned that the TSE should, applying EW probabilities, retrace either 38% (about 10400), 50% (about 11250) and , most likely  61.8% (about 12100) Higher levels are, of course, possible but not probable.  Today the TSE is up 58% and early January it briefly hit 60+%, the Dow Jones is up 61.18% at the opening this morning. Nasdaq 84%.

However you slice it this correction is most probable done. Momentum is terrible, just consider that since early June the TSE did not move much gravitating to about 11000 all the time. Certainty is not a luxury we have in trading the market but now is clearly, or 2 months ago,  an excellent time to start shorting this index.