I don't think 40 is in the cards right now.
It has to get to 39 1/4 to void a down move then 40 might be possible. If you
have any size I would look to start taking profits between 37 1/2 and 38. Then I
would look for the next leg down. If 39 1/4 is hit then there would be
entry prices for both an up and down leg.
I keep sticking my neck out with these predictions
and some of them are very short term in nature. when I traded on a daily
basis for cash flow it was like shopping at Wal-mart or Costco. You get to
the register and the bill is between $100 and $300 and you bought nothing over a
couple of dollars and you wondered how the bill got to be so much. The
same sensation hits you when your stops keep getting hit and you only lose a
little bit all the time. Pretty soon it adds up to real money. You
can't go broke taking a profit.