Tuesday, August 23, 2011

Well lookey here...

On Tuesday we started the bounce that I've been waiting on for the last few days. Of course, it came just as I faded on the theory that a bounce was coming, but hey, at least I didn't get ultra uber bearish like the super gurus, who will now just deny it and erase their opinions from public view, or give the good ole "I thought this could happen" excuse. They surely didn't "think it could happen" Monday when they were screaming bloody murder and that the sky was falling (so to speak). It's actually quite comical how they poach from other services and gurus, while thinking no one knows where they got their ideas from. Ah well, a scoundrel is as a scoundrel does.

I don't feel "the low" is in, but once again, we could have "a low" here as this test down had shown an inter-market divergence. The NASADQ 100 ($NDX) and Russell 2000 ($RUT), which are considered leading indexes did get a test of lows, while the Dow and S&P 500 had higher lows put in. Usually this means that the "work is not done". This doesn't mean we can't bounce here for a little bit, as we continue to fill out the corrective pattern that started a few weeks back. The $NDX and $RUT did LEAD on Tuesday's bounce, which is a good sign on the short term.

My opinion remains the same: Ultra-short term bullish, longer term bearish. I think we have lower to go, and believe we will go lower after we finish up whatever pattern we are forming here.


No comments:

Post a Comment