Thursday, September 24, 2009

And I'm Back!

Wow, take a forced week off from the Internet world and you'll be surprised at how much extra time you have on your hands to do projects around the house!! Well, I'm back on line and after looking over the charts I see some very interesting things lining up:

- the VIX is once again trying to breakout of a bullish wedge
- the USD is showing some strength
- yesterday's stock market reversal came in area that is ripe for the end of primary wave 2 with a completed zigzag.
- we are in a majorly overbought condition
- the bullish sentiment is at levels that is consistent with what one would expect of a primary wave 2 top

So, I've put up a couple of charts with key levels. I am waiting to see how far we drop before we cross back over the 34 hourly SMA (currently at 1065 and falling). The past drops have been short lived before this was tested. If we can put some distance in here, then we know we have something worthy of the beggining of primary wave 3.

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