The screen shots above are not to be confused with anything more than a day's performance over the past week of gap downs.... they represent a lower bollinger piercing which in 98% of the time will bounce...
Both markets showed bounce starting early Friday morning, continuing to hold positive air, although not as robust as I have seen on previous Fridays.....
Japan... Lybia... the whole middle East... it is mind boggling that we still have as much air as we do...
The link below leads to the first two charts in the Public List and they show a serious break in the trend line in both markets... It is these breaks of the trend line that are most ominous...
Stockcharts Public List
In order to determine the amount of bullish sentiment in the market.... we can make an assumption based on patterns developing... which would suggest demand weakness on one hand, yet as the markets have both pierced the lower bollinger, we know that lower bollinger piercings result in a bounce 98% of the time...
The amount of sellers (investors) increased as the move down increased... It is unlikely they will re-enter.
This kind of whiplash will have an effect of removing the bulls from the market. It is increasingly hard to have confidence...
As an example... if we were tracking a down market which had been well established from a previous high ground... as the market whipsawed into support we would be shaking out the bears..
In this case we are whipsawing into resistance.... shaking out the bulls..
A (bounce into next week) rally that could whipsaw it's way into the middle of May needs to be taken a day at a time....
It is easy to look over the supporting indicators and see that strength is still showing, but a closer look shows every indicator has broken down...
Supporting indicators are moving into a position of oversold.... a consolidation would be the next step as the markets move down to confirm the indicators...
If the market is going to keep the pace... then the indicators must move up in step to confirm the rising indexs.... which will it be?
Is Friday's bounce a bull trap indication that there is enough strength left to test market resistance?.... Which I believe if your lucky... you may enjoy a last chance to prepare for the worst and hope for the best.... as the rally moves to meet the Summer Doldrums...
I smell some repositioniong opportunities....
GLTA Lostoutwest
If you see the hand mousing over screen shots... click on screen shots to enlarge them.
After connecting to a link... you should refresh the page by clicking on the Home button or the Web Page title to ensure the latest updated page
|| Stockcharts Public List ||
|| Kenuck SmallCap Trader || The Gold Report || Korelin Radio || StockCharts You Tube Lessons || Money In Metals || Resource Clips || Stockhouse || Ticker Trax || Bullion Bulls Canada || Lex corp || Track My Trade || National Post || Grandich || Penny Stock Journal || FreeStockCharts || Gold$eek Drill Results 101 || CBCnews || Seeking Alpha || SmallCapPower || Macroaxis || GOOGLE
Please read our Complete Disclosure
No comments:
Post a Comment