Friday, July 9, 2010
Almost everybody calling for a bull campaign is rather deliberately ignoring some essentials or has a hidden deception agenda. After having reached my first big target area 1000-25 we have a regular upside correction or consolidation phase currently. As we have recently activated the death crosses for SPX and DOW one regular pattern is that markets rally right after for a short while before resuming the prime trend - which is down. PPT changed the strategy it seems as they let the people get short into the long weekend to squeeze them right after but in any case it was overdue. The question rather is will it run its full magnitude. At 1070 we have run a 50% retracement and had a 3 day run which should be reversed today as it should deploy in an ABC wave pattern and currently A might have been reached yesterday and today should confirm by a down day. Last time in 2007 as the death cross occurred we also had a sharp 4 day rally right thereafter even up to the MA's before the market started to collapse.
Posted by getagrip at 5:20 AM