As I stated last week I was looking for the market to decline in the next 6-8 weeks and I had a feeling that Greece would do the trick. The S&P futures today closed below the 2073 mark, closing at 2053. I now have a sell signal on my daily charts on the S&P futures. As of today’s 350 point decline the DOW is down for the year. I stated that if the market got between 18100 and 18500 as a long term investor I would be looking to sell and go to cash. If there is a rally to come it is more of a selling opportunity than a buying opportunity due to the technical weakness on the daily charts. I expect the gaps below to get filled, and we should have a pretty decent rally between the beginning to mid third quarter and the end of the year from a much lower level. Gold with what is going on in the world was up only $5 when normally it would be up $50. I have sell signals on gold on the weekly and daily charts, and expecting gold to probably retest the 1140 level. I am bearish on oil. When oil was pushing upward there was significant overhead resistance in the 61 to 65 range on the weekly charts and oil stopped around the 62.5 level. However while oil was going up, oil stocks were deteriorating. If oil closes around the 56.5 level I would get a sell signal on the daily charts and look for a move to the high mid-40 range. I would then look for a bounce and ultimately a move to the high 40s range. My course Pattern Recognition 101 is almost complete and I will keep you posted if anyone has any questions please call 203-617-4026 .
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