Thursday, January 28, 2010
S&P Just Declined in 5 Waves on 5min Chart
Well yesterday I was wrong in stating we'd have a rally continuation in the coming days. That still may happen as this current sell off isn't that convincing internally as the VIX barely spiked 4% so far, volume isn't stellar, and the NYSE internals are bearish but not jaw-droppingly bearish. However, the decline this morning has traced out a clear 5 wave drop, so any crazy bold bulls in this market might want to observe the market here. Just above 1100 is key to the short term bearish case at this point. A strong close below the long held support of 1080 would be deadly to the S&P.
I was also wrong on the GBP/USD tracing out a triangle that was going to thrust lower. The pair actually thrusted higher, but did not hit my long held stop of 1.6295 and ended up reversing sharply this morning. This pair is still severely lagging the decline that the EUR/USD is undergoing so I would like to lower my stop in the near future.
I almost feel I shouldn't have posted anything yesterday, lol!