Tuesday, December 15, 2009


The wedge retested yesterday and today was down, but we formed a new wedge and backed tested it!
The candle stick formation on the dailies is similar to a bearish tri-star pattern. We will have to wait till tomorrow to get confirmation.
VIX looks like it could go either way at the moment.
I posted the BPSPX:CPC chart today but I am not looking at it specifically. Note the red lines. It shows there has been a negative divergence between the market and the BPSPX. A new daily closing high was made, yet the BPSPX was not as high as the previous peak. This implies the market is making new highs on the backs of fewer stocks.

Hard to say what it is tomorrow. I am still looking for a strong pullback and then maybe a new high through Christmas.
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