The market produced some decent downside action today and we did get a few more sell signals.
The key here is the green trend line that is on the attached chart. The market needs to break this trend line and close below it to really confirm an intermediate term shift in trend.
The hourly chart is calling for some type of bounce tomorrow and this could be an all day rally or simply a reflex rally in the morning.
The important thing to remember is that regardless of when and where the strength comes from, it should be used to hedge or reduce equity exposure as we have been in the sell strength mode for 3 days now.
Monday, October 15, 2007
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