Monday, December 8, 2008

Short Term Sell Off Likely First; Dec. 8, 2008

Looking at the 45min S&P futures above I must say that some immediate weakness is due before the rally can continue higher to the previously mentioned target range of 950-975.

You can see the stochastics crossing down several times at lower lows while the S&P price continued higher. The MACD and RSI are also showing a bearish divergence.

Looking at the EUR/USD which has been tracking along with the stock market; it has broken a trendline and is making lower lows which may signal that the uptrend is broken.

Anything can happen over night, but it appears tomorrow will be a big fat red day.

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