Friday, May 22, 2009

Looks like a bearish Tuesday

Today's price action couldn't have played out any better for the bears. Thursday's gap never got filled, price reversed hard at a near perfect 1:1 wave parity and at the 38.2% retracement zone, which I outlined as having very strong resistance. We sold off near the end of the day, and I fully expect a wave 3 continuation to the downside on Tuesday. What would make me re-evaluate, a fill of Thursday's gap.

Enjoy the holiday weekend, I know I will!


  1. Very good chart. While this market has been more or less boring sideways, there´s better chance now to get at least one more powerfull sell week ahead.

    EurUsd 1.4150 is going to be key in here also while treasure auction takes place on next week.
    Pretty much everything set soon, UsaCad going to hit that .618 line also as well as

  2. PPT to the rescue again :( Nothing but bad news and the markets go up. Again! Frustrating to be short, but too risky to be long. Like a broken record...

  3. Yes, everything looked good until we opened and rallied hard. I'm watching the close for some clues about this rally.

  4. Like I said last week -- Looks like we're going higher in the next 5 waves, and then just a minor correction before the next group of Fives.. Now dump those Poots for good!

  5. Jean, I very well may have to. I'll be watching spx 915 to see what happens and either add or exit.