Month: December 2011
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
Neutralizing Under Prior Support?
This morning’s gap higher has generally been sold into and the pattern of lower highs and lower lows has not been interrupted for any of these markets, the best case you could make is that they have begun a stabilization process. If the markets are to recover from current levels, it does not appear to … Read More
