Wednesday, February 4, 2009

Still on course...

Wow, I thought the market was too weak to make it to the 61.8% retrace level. We got there and it was pretty much the Kiss of death from that point. The fear is starting to build though we saw some bulls come in at the end of the day. If this is the start of this portion of the major move down, then pretty much expect it to dive tomorrow and into Friday and Monday. Looking for a minimum of 818 before we get another little bounce.

But be careful, it looks like its collapsing before hitting the upper trend line of the triangle. There is still the possibility of more choppiness and that wave 2 has not quite ended. At most it may try another shot at 85.4, but I really don't expect that.

If the white candle was a little longer...this looks like a dark cloud cover formation. BAC is a mess and it broke 5 today. SRS was showing unusual relative strength this morning, the SP500 was up a good amount and SRS was also up. The impending CRE collapse is getting nearer.