Thursday, 26 April 2012

11am update - the bots are still trying to kick

They sure are trying to kick out EVERY weak bear this morning. We've come close to blowing out the top of my often noted 1390/95 bearish-stop zone. Those algo-bots sure know their levels.


I have adjusted the count, and now it properly syncs with the daily chart (as noted below). Regardless of the minor waves within the greater wave'2/Bear flag, we should go no higher than where we presently are.

*Bears need a break under the 10MA, currently 1388/89

SP'daily - bearish scenario

As first presented yesterday, this is my current primary daily chart (bearish scenario). If it is a H/S formation, then we're at the top/end of wave'2..and a major drop is imminent.

Clearly, any 'serious money', will have short-stops, equivalent to no higher than around 1395/1405. If we go any higher than that level, then both the weekly/monthly cycles will have turned back bullish, and May could easily ramp - not least with the Facebook IPO due later that month.

Bears MUST see prices start to slip lower today, we have only 3 trading days left of the month, and we need closing levels on the bigger cycles somewhat lower than current levels.

More later