Tuesday, December 29, 2009

Will Santa's rally go missing this year?

We're at a very interesting crossroad with today's price action. We've completed a 5 wave pattern (based on the overnight futures we have a price high ~1132 cash) that ended right at key resistance. We accelerated down into the close as a key trendline was violated. Financials and Energy have been lagging significantly as of late. Even healthcare seems to have put in a double top, and key technology leaders may have rolled over as we have a number of potential reversal candles on the daily charts. And to make it even better, we have the santa rally (last 5 days of 2009 + first 3 days of 2010) that most people seem to have already baked in.

Seems like a perfect time to wipe out the buy the dip bulls. Key support sits at the 1113/1116 area. If we slice through it, then you know primary wave 3 has finally arrived.
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