Wednesday, March 25, 2009 9:32:22 AM
Okay, looking at the WEEKLY charts, we're now bigtime overbought on the semi stocks, which should mean downside on the market overall. Moe was saying last night that he thinks we're in a wave one on the hourly charts that just completed - setting up a wave two down. Those of you who've followed me through the miserable MRVL days know that wave 2s many times retrace as much as 70% of the wave 1.
Notice the 2 period RSI on that. All semi stocks look the same. However, this is end of quarter and up is the trend until otherwise proven wrong. But I wouldn't be buying anything now. The volume is weak which supports the 'melt up' theory of funds jamming the market to post better than real life quarterly statements. Frauds.
However, this apparently is a B wave beginning which means the SPX target is around 1000.
Then watch out.
Notice the 2 period RSI on that. All semi stocks look the same. However, this is end of quarter and up is the trend until otherwise proven wrong. But I wouldn't be buying anything now. The volume is weak which supports the 'melt up' theory of funds jamming the market to post better than real life quarterly statements. Frauds.
However, this apparently is a B wave beginning which means the SPX target is around 1000.
Then watch out.
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