Monday, October 26, 2009
Bears Taking Control - Forming a Top
Take a look at the daily S&P cash chart. You can see the candlestick formation I pointed the blue arrows to. If you look closely at those daily candles, you see that the S&P reached its high around the 1100 level and was sold off. The bulls continued to try and rally the market only to keep failing. The bears have increased in numbers and ferocity, finally winning the bull/bear battle today with a nice daily reversal candlestick, and a break to new lows. In the process, it cancelled out the bullish triangle scenario and placed the immediate bearish count on the forefront. Today's action also coincided with a very impressive dollar rally, but a bottom is still yet to be confirmed as so far it's fallen just short of satisfying my requirements. But the dollar bottom and stock market top scenarios are looking very good at this point, and I'm just waiting for confirmation.