Up Against Key Levels

Once again, when the market looked its worse, the market gapped higher making it difficult to take full advantage of the range without accepting the unknown risk of holding overnight in a weak environment.  Now the markets have made an intermediate term higher high,it would be best to see a higher low develop above the … Read More

Support- The More Times Tested, More Likely To Fail

As a level of support is repeatedly tested, the buyers who were defending that level eventually get worn out as the supply overwhelms demand. When support fails, a new leg lower begins. In a downtrend, this action is to generally be expected, it is part of the process of “lower highs and lower lows.” Of … Read More

About to Crash?

We saw a spirited rally this morning which once again failed to hold and markets continue to be quite vulnerable to further selling. Yesterday we observed that the best case scenario was the beginning of some stabilization, but with markets back to the edge of the cliff and below declining important moving averages, the risks … Read More