Wednesday, July 22, 2009

Now we really are getting complacent...

Well we have a confirmation on the bearish hanging man candlestick formation on the dailies. The stochs are very overbought also.
VIX is in the low 20's, which we haven't seen in quite a while. It is approaching a lower trend line (red) that has held up during this down turn.

The crossover on the BPSPX:CPC the other day is a warning. The market recovered too fast in the recent drop, we should see a sizable correction in the next few days. Still debatable whether the SPY can make it to 105 (depending on your ewave count that is the 50% retrace).