Crunch Time

Its popped up above our wedge to test our patience and we will reconsider with a close above 1132. Brave speculators who have superior money management may have sold into yesterdays spike or be considering selling now as momentum wanes

There was a weekend g a p (caused by Basel III supposedly) which will almost certainly be filled  and then if we can maintain any heaviness we should be away downhill.


Enter When Ready

Should these triggers be taken seriously is now the question???

In my last post I asked the question whether the recent rises and the buy alerts they're generating should be acted on.
The answer is most emphatically NO.

We still havent had an actual sell signal generated but the formation of another wedge pattern almost identical to the previous one alerts us to the possbility of sudden violent falls once the tide turns.

Its is quite possible there will be an upward spike before a fall and brave speculators may wish to sell into this, but the most prudent course of action will be to wait until the lower line in the wedge has been broken before entering short positions.

Markets looking bullish

After falling strongly when the wedge broke

it didnt take long to wipe out a lot of slowly won gains

and in no time (a couple of weeks ) we lost close to a hundred points on the S+P, bottoming out so far at around 1040 where we saw some hourly hammer candles (as shown by the mouse pointers) that indicated a temporary bottom had been found

We are back over 1100 again and so the markets are now triggering buy signals as they cross moving averages and climb quite sharply. Should these triggers be taken seriously is now the question???