With the holiday season upon us for the next month, internals data will probably be skewed, confusing, and not as reliable as they are most of the year. So I'm not going to depend on them as much, unless we see a huge spike in volume.
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Overall there's not much to add to my last post other than today printed a nice reversal bar on the daily chart. Since the central banks saved the world for the hundreth time earlier in the week, the market has been hard pressed to mount any follow through to the rally. I suspect this is very discouraging to the bulls and will lead to a big selloff soon. With volume so light and the holiday season here, I'm not sure how quickly it will be for the decline to materialize, i.e Monday? Two weeks? But regardless of the exact timing, financial media is boasting about this week's massive stock gains as if it's bullish, while the technicals suggest the action this week is actually bearish for the weeks ahead. The market can certainly float higher in light holiday trading, but that's a guess, what's more certain and supported by technical evidence is that the market looks poised to decline hard soon.
Today's high seems like a good place to put a stop loss for aggressive bears. For all others, above 1277.55 remains a very solid stop level.
Prechter: "The Trend Is Exhausted"
The euro appears to be in a lot of trouble here. The gap from this past Sunday is still open, the RSI is diverging on the 4 hour chart, and today's selloff looks like a top is in. I'm aggressively bearish the euro with a stop just above 1.3550 for my short term trades.
The Trend is Exhausted
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.