Tuesday, April 10, 2012

Approaching a Critical Support Level

The 1340 level is critical support for the intermediate term cycle. A decisive break of this level could spell significantly lower prices. My 'stuff' shows that it is quite possible for this down cycle to end circa  May 17th-19th. (more on this later)
The most important action for the next while will be to monitor any rally and where/if it terminates--this will determine where protective buy stops should be placed.
Also..if VIX breaks above the critical 22-23 level a intensification of the down trend could be a real possibility.
CRB INDEX
This chart should be monitored. If it breaks support (yellow circles) it is possible that a new chapter in the inflation/deflation saga may begin to unfold...which will have significant implications to many other markets.
I have the feeling that things are going to become quite 'interesting'...'confounding'...'terrorizing'..unnerving...profitable and epochal.

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