Friday, May 8, 2009
Left hand the BKX at a Seq 12 count coming to the target zone. That was the reason I assumed next days might be a bit more tricky going forward. The NDX is about to close on a weekly reversal pattern but the SPX remains strong and about to close at the weeks highs in a week7. The BKX and XBD are in week 8 and about to be done which extends the SPX strength briefly and creates the intermarket divergence. The rush of the final fools (sorry do not mean to offend anyone) into banks is the final driver. Always investors who think the emperor is not naked. Hence by Monday/Tuesday this segment should top out around 45, which will turn all indices with a financial weighting down as well.
Posted by getagrip at 1:15 PM