Wednesday, June 10, 2009

Trendline Holds.....for now; June 10, 2009

The trendline was broken midday but could not close beneath it on the daily charts. This tells me the market is short term bullish until a strong break and close beneath the trendline occurs. Regardless, any rallies should be short lived at this point and capped below the 1000 S&P futures level. The sideways action is "triangle-looking" which means one more sharp rally to a new high before a violent reversal. That will probably occur and take out the weaker bears before this market finally declines like I've been projecting for weeks.

Bottom line: the market is short term bullish as long as it trades above the blue ascending trendline drawn above on the daily S&P futures chart, and any rally should be capped below the 1000 level.

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