Monday, 21 May 2012

11am update - market trying to break upward

We are still very much in the down channel, however today really have the first real sign of underlying sustained strength in over 2 weeks.

A quick look at the daily cycle cycle charts (rainbow style) puts things into perspective...

Dow, daily, rainbow (elder impulse)

VIX' daily, rainbow

Both charts are suggestive of a turn, but...we need a close around current levels..if not better, and good follow through both tomorrow and Wednesday.

Something I mentioned for much of last week , 'look for black doom candle' on Facebook..well we had that, and today's significant morning drop confirms once again..the power and important of the black candles! They are often good warnings, along with their counterparts - the hollow red (reversal) candles...

FB, daily - a kooky, but fun chart

Stay tuned!