Stock markets turned down quite sharply, as we had indicated last week.
The uptrend was broken on the day of Lunar distance extreme (perigee)
The S&P500 index has dropped to 1080 already.
This means we have seen a very weak Green Period (down 62 points on the Nasdaq) come on the heels of a flat Red Period, so the strength we saw recently has been firmly negated and the path of least resistance is still down for the moment.
With a Red Period now in effect, we are looking for further downside action in the coming week. The question becomes whether we will hold above the early July lows.
If not we are probably in the midst of a nasty decline that could last well into September-October.
Stay out of the market, or hold on to the protective positions you may have taken.
Be well, Danny
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This entry was posted on August 16, 2010 at 9:41 am and is filed under Market Commentary.
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LunaticTrader
Outlook August 16
Posted by Danny on August 16, 2010
Stock markets turned down quite sharply, as we had indicated last week.
The uptrend was broken on the day of Lunar distance extreme (perigee)
The S&P500 index has dropped to 1080 already.
This means we have seen a very weak Green Period (down 62 points on the Nasdaq) come on the heels of a flat Red Period, so the strength we saw recently has been firmly negated and the path of least resistance is still down for the moment.
With a Red Period now in effect, we are looking for further downside action in the coming week. The question becomes whether we will hold above the early July lows.
If not we are probably in the midst of a nasty decline that could last well into September-October.
Stay out of the market, or hold on to the protective positions you may have taken.
Be well, Danny
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This entry was posted on August 16, 2010 at 9:41 am and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.