Markets were pretty much flat yesterday and ended flat ,, so not much to say since the last posts really -- the euro however took a nice dip(as called on the "kiss of death") chart,, so right now looks good if euro could breakdown further.
So read all the charts still the same.
Conclusion:
TZA got a daily chart buy signal yesterday which means that small caps may have turned down from here. Again the UPSIDE is very limited as this is forming a major top. The dow jones already made a new high since October but other indexes lagging big time ,, which is usually bearish.
Small caps should be the ones who leads us up,, and they are still lagging a lot. I can hold shorts for weeks if so ,, as I see the downside much much bigger than the upside here. Can we pop to SPX 1292-1300 area ? Sure we can do this ,, but again its right above us ,, upside is LIMITED and downside is below 1100 and below the October lows. Suddendly we will get a sharp reversal 3% down or more,, so be ready for it.
Do you use arithmetic rather than log? The down trend line that you have drawn on the 500 shows differently and as already broken on my chart but it is log. If arithmetic, why?
ReplyDeleteHi Valun
ReplyDeleteFirst of all ,, which chart are we talking about ,, many lines on the charts :-)
Second - if you talking about SPX ,, then are you sure you drawed the line (not for SPX top) but from July 2011 top.