One missing link is the closure of the SOX rally which we (have) are about to reach. At 268 is the 38.2 % retracement level from the MAY 2008 high. The trendline resistance from April 2007 is at 285 which could be reached in an extreme case which I doubt will happen for now. We are far above the daily Bollinger which arrests the momentum especially with pending 13 counts tomorrow. The other missing link is for the XBD to make the 13 count which happens probably today if we manage to close above 93.10. We have to see how it will close tomorrow as we did not close lower on Friday due to some last minute buyers who wanted the market to close higher ( may be Goldman) as they know how technicians evaluate and since many missed the rally we are seeing must buy in action as most long only funds are underweight stocks. That's the whole plan to get the suckers in and they are doing well so far.
Monday, May 4, 2009
The missing links for a top ( interim ) - SOX tech outlook
One missing link is the closure of the SOX rally which we (have) are about to reach. At 268 is the 38.2 % retracement level from the MAY 2008 high. The trendline resistance from April 2007 is at 285 which could be reached in an extreme case which I doubt will happen for now. We are far above the daily Bollinger which arrests the momentum especially with pending 13 counts tomorrow. The other missing link is for the XBD to make the 13 count which happens probably today if we manage to close above 93.10. We have to see how it will close tomorrow as we did not close lower on Friday due to some last minute buyers who wanted the market to close higher ( may be Goldman) as they know how technicians evaluate and since many missed the rally we are seeing must buy in action as most long only funds are underweight stocks. That's the whole plan to get the suckers in and they are doing well so far.
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