Wavespeak Mid-Week Update 2.25.2010

The indices continue to find resistance at important 61.8% retracement levels this week after pulling back off these levels on Tuesday. However, with price immediately recovery a large portion of Tuesdays weakness today, its becoming more and more difficult to think that downside potential will survive this recovery. This is because the recovery now threatens to turn impulsive, and if this up leg in February is impulsive, it would tell us that higher prices are likely, either in a larger B wave correction back towards January’s highs or in something bigger to the upside. We will continue to give price some breathing room to make a statement on its own, but right now, my jump to a bearish stance is appearing premature due to price’s continued ability to blow off any type of weakness and turn back up. Again, we will wait for a statement from price before officially removing our bearish stance, but be aware, momentum sure appears to be shifting here..........request a free copy of our latest publication at www.wavespeak.com)