Currently we may be fairly close to a short term high point although there still remains potential all the way up to 1515 to 1521 before a short term correction is put into place.
I will begin to take some of the short term profits off the table as we work our way towards the short term upside. The market remains in a positive seasonal pattern over the next two days so higher prices remain the highest probability. These prices however will come with more effort and not the sharp rally days we have seen recently.
These reductions I will be making in equities are for short term traders only. Intermediate term traders can use the potential corrective weakness as a platform to increase their exposure to equities.
The market on an intermediate term basis remains poised to have a very sizable rally for the month of January and part of February.
The wedge on the 5 minute chart will give us an indication as to the next short term move in prices. There is also a shorter term pattern forming as well and this is illustrated on the above chart.
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