The relief rally was very short last Monday, it didn’t even last for a day.
We warned for a downward acceleration if the S&P dropped below 1285. That’s what we got and we find ourselves below 1200 at the time of this writing.
The path of least resistance is now clearly down.
Here is our current chart for Nasdaq (click for larger image):
A two year uptrend is now broken.
We remain in lunar Red Period for the rest of the week, so we could easily see even lower levels before any meaningful rebound starts. There are likely to be some strong up days as well, but don’t be too quick to see them as the start of a new bull phase for the market. My momentum indicator also signals it is too early to call a bottom.
Stay out.
We also released a new issue of our Four Pillars Finance newsletter today.
You may want to check it out.
Good luck, Danny
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This entry was posted on August 8, 2011 at 7:43 am and is filed under Market Commentary.
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LunaticTrader
Outlook 8 August
Posted by Danny on August 8, 2011
The relief rally was very short last Monday, it didn’t even last for a day.
We warned for a downward acceleration if the S&P dropped below 1285. That’s what we got and we find ourselves below 1200 at the time of this writing.
The path of least resistance is now clearly down.
Here is our current chart for Nasdaq (click for larger image):
A two year uptrend is now broken.
We remain in lunar Red Period for the rest of the week, so we could easily see even lower levels before any meaningful rebound starts. There are likely to be some strong up days as well, but don’t be too quick to see them as the start of a new bull phase for the market. My momentum indicator also signals it is too early to call a bottom.
Stay out.
We also released a new issue of our Four Pillars Finance newsletter today.
You may want to check it out.
Good luck, Danny
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This entry was posted on August 8, 2011 at 7:43 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.