Wednesday, June 2, 2010

Storm Clouds Gathering

Despite the 'thrust' injected into the market with the massive Adv-Dec Volume Ratio on Thursday (36:1), the market is experiencing difficulty getting above the 200 day exponential moving average. (1101). The 21 & 55 day emas are trending down and approaching the 200. While it may be too soon for the bacio della morte, the bear can be as unpredictable as the bull is relentless.

A convincing move above 1103 would set up a target of 1135-1140. A break of the 1040 level would leave the 1008-1020 level vulnerable. A distinct decline through 1008 would be a warning of probable violent downside action in the near future. The market is hanging by a thread.
right click for enlargement options

No comments: