Friday, June 25, 2010


The rally from the June 8th low retraced 50.81% of the April-June decline on Monday June 21st. The possibility that this rally has ended and thereby marked the wave 2 high in an ongoing bear market has increased: the next wave down could be significant.
The 2100-2140 area remains the point to watch. If this level is broken, a swift and steep decline could take place in July. The NASDAQ Advance-Decline line is showing signs of weakness and if it were to breakdown on a session with lopsided breadth, the stage could be set for some extraordinary drama on Wall Street.
The cycles are lining up and the market is beginning to reveal its hand.

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