Tuesday, May 17, 2011
Stocks Should Continue Lower; Euro Finding Support, but Should be Short Lived
Internals today don't tell me much. Volume was farely quiet at under 1 billion NYSE shares, and the rest of the internals were slightly bearish just like the overall market was. What is of note is the fact that the Dow took the biggest hit today and closed with the biggest losses of the major indices. The S&P and Nasdaqs didn't do nearly as bad, so looking at the Dow alone for overall market performance today would not be wise. It was basically a flat day with a slight bearish slant. Whether the S&P and Nasdaq strength is a sign of a just a temporary relief rally, or the start of a more established floor and resultant rally is yet to be seen. The evidence is still overwhelming that at least a decline of a few more weeks should be underway though. I still favor the bearish side right now.
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The euro is finding support around the 1.4200 level, but the bulls have so far been unable to sustain a rally or even make a new high. Until that happens, the trend is still firmly down in my view. Making new highs and rallying sharply here wouldn't necessarily remove the bearish bias I have, it would just lessen my conviction of it a little.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.