Maybe I should start to fade myself if I get too bearish ? 🙂
Today could be the beginning of a rally that takes us to 1150 which would make a right shoulder on what looks like a large head and shoulders topping pattern.
We are going to need some pretty strong follow through next week and tomorrow to get there. I still view the next 2 weeks as the most likely for a break of 1040. It all depends on how fast we rally from here and how soon we can get to 1150, if that.
Given how fast the markets are moving lately a move to 1150 could come a lot sooner than expected.
Based on yesterdays reversal it really was looking like we would see some downside follow through. The light volume was the kicker apparently and showed the market was just not ready to break.
How we test 1100 in terms of volume is going to be key in figuring out how much more juice this rally may have.
Apparently June 17th to 25th, 2010 is the most ‘vicious’ in terms of astro aspects and both Larry Pesavento and a couple other Astro experts I follow seem adamant that this period is going to mark a significant low in the markets, or a period of wild volatility.
Could they be completely wrong? Yes. But that window of days still seems to be a major focal point for the market.
So for the most ideal near term bear scenario to play out, it would be ideal for the market to hurry its rally perhaps near the 17th of June and then turn from there back down.
If we are in a true bear trend both near term and intermediate term, then one should expect in general for the rallies to be sharp and powerful, but they should also be relatively brief time wise compared to the decline portions we have seen…