Monday, May 10, 2010

Hanging in Fiat Limbo.

The behavior of the markets will be critical between now and the May 17-19 Energy Dates. A break of the May 6th low (1065.79)--or possibly the May 7th low (1094.15) will be an ominous sign for the markets. Conversely, an impulse wave with confirming volume indicators to new highs would be quite bullish and suggest significantly higher prices. The violent nature of the latest correction appears to be more than a corrective wave and could be the initial break of a much much larger decline that will unfold in the near future. BE AWARE--BE CAUTIOUS--BE OBJECTIVE.

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