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Friday, November 5, 2010

Friday, after the close!!!

A relative quiet day after yesterday, with the SPX trading in a tight six point range for the day after hitting the top of the channel. This most likely is another period of consolidation before a move higher, as the odds for a blow-over top are quickly diminishing with time. The short-term counts are still a mess, with more 3-4's waves then 1-2's waves available to match them up with. The RSI is normally a good indicator to mark 3rd waves, has three peaks with the latest one the strongest, under normal circumstances, this should be the top of the iii of 3 wave, but I am just unable to find enough 1-2's to make it work. By all indications the market should of sold-off earlier this week, but who knows how much effect the FED had over what the market would of done, or how long the over-bought conditions will last before the technicals take back control.
Until the SPX starts printing lower lows this could escalate further towards 1200. If the Dollar continues moving lower, at some point people are going to realize that all their gains in the market are getting ate up by a cheaper dollar and might move towards Gold or other commodities to protect their wealth. It sure looks like we are heading into a very volatile period now as external forces are getting to extremes. As I keep repeating, tight trialing stops are a must. Wonder what the Chinese will have to say to Obama, LOL!!!!
-More charts and analysis over the week-end.

1 comment:

  1. it's irrelevant if you have your money on stocks or gold and both are going up as a result of a weak dollar