Let me try again. My earlier post was shit, not that this one will be much better.
I think the SnP cash is a better gauge of the Market than the Dow. I use the Dow but only in the sense of divergence and convergence with the SnP and the NASDAQ. The 3 of them constitute the equities market for me so I watch all 3. But I do not give them equal weight.
Until 1245.34 is taken out with volume this nothing more than a correction off the 1326highs in a move that started off the lows in Oct. 05. If 1245 is taken out with volume things will have changed.
Wrt The Dow and giving back all the gains from 2006. The point of reference for me is the start of the move, Oct lows in 2005. Where we are now is corrective in nature in the context of the move off 10098 to the high of 11545. Where we are now is a point of support and should be watched.
I will agree that the markets are at critical points and need to be watched in here, but it is too early to be sure of the future move in the market one way or the other. But we will find out shortly. We need buyers in here that is for sure. Plenty of cause for concern. But I am still in wait and see mode.
The SnP
To me it is possible what we had was climactic selling on 5/24. This was followed by a rally to a high on 6/2. Right now we are currently in a testing process of the 5/24 day. This testing process is checking to see how much additional supply is still present. Nobody knows how much supply until price gets to a point to trigger the selling. Obviously, if more supply comes in on the test then the current downtrend will continue.
But, it is possible that the 24th was a selling climax, and if it was we should expect to see decreased price spread and decreased volume compared to the 5/24 day on this test. We shall see how it plays out.
We could be forming a bottom here. And if so I want in. this would be a nice point of entry. Lots of people think we are headed down. Being contray by nature, like you (o: ~
I am looking at the other side of the trade. If I am wrong then I will bail.
I know I read lots of calls of a top in the markets on Jan 20th, this is the same kind feel to me.
Now to the point where you did get to me. Wait. No. Never mind. It really does not matter.
No hard feelings here Frank talk to you later.
AI
