Wednesday, February 4, 2009

Corrective Rally Ending/Over, Huge Selloff Coming; Feb. 4, 2009


The above S&P 1hr futures chart shows the rally possibly over as it bumped against the 61% fibonacci level and reversed this morning. Plus, as you can see the MACD is showing a bearish divergence as it never made a new high after the initial surge early Monday. So far, there is very little follow through from yesterday's big rally. Plus, yesterday's breadth was not impressive at all with not even 2-1 NYSE advancers to decliners and now today's rally has the same composition. Also, I noticed the last two huge selloffs were preceded by a huge astonishing surge in the Nasdaqs a few days prior to that happening. Monday and today have seen the Nasdaqs absolutely surge just like the times before. The setup is right, a top is in, or is coming very very soon and a massive selloff that should easily break right through the 2008 lows is coming.

I'm fully short right now.

3 comments:

Anonymous said...

hi todd, u seem to post only when the trend is going according to ur prediction....when u r wrong u disappear for many days without posting an update...

Michael K. said...

This is it, buckle your seat belt, we might get one more small pop on Thursday, and enjoy the ride down. GL

Todd S said...

Sorry for "disappearing". The count held, but it's all about waiting for the correction to end and corrections are extremely hard to count. I've been very busy and didn't feel it important to update the day-to-day monotony of the corrective ascent higher leading into another useless government bailout. But I'll try still post some type of update in the future. If any significant development occurred I'd post it. If you have any questions, just send me an email or make a post and I'll respond.

Good luck man!

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