Is this a head and Shoulders top forming? There is a clear left shoulder and a head and now we might be working on the right shoulder formation. Volume was exceptionally strong on the way down from the top of the head which implies distribution while it has been anemic during the rally the past 4 days. It will be interesting to see the volume tomorrow with another up day after the announced BOA investment in CFC. I suspect tomorrow will be the last expansion day of this rally with sideways action the next few days just so the oversold condition can be worked off. I figure out another week to two weeks of sideways action and then it can start trading water again as we enter into September. September and October are seasonally the weakest months of the year. Although those two months have not lived up to their reputation the past 2 years, considering the set up on the S&P 500 I suspect they will this year. Anyway, I am not convinced of this rally and I think that at least a retest of the low is coming. If that low breaks then we will have a completed head and shoulders top with another 180 points to go on the downside which would put this index into a bear market.
3 comments:
hey Zues
THERE'S A COLD front coming on SEPT 7th to the midwest that reaches down to Texas...so if you own UNG CALLS, the NG market will probably rally round this event and you will see a spike in UNG's PRICE...THIS WEEK...
zee
if you are late to the party...buy the SEPT UNG 32 calls...
Zues
are you posting your comments at any other blogs? i really liked your daily comments, when you were posting at TK's, and i was just wondering, if you still post comments, somewhere, or have just given up?
zee
Z stock thank you for your interest. I am not posting anywhere else, I just did not get the chance to get active in this block. I will try to post once a week, that is not too time consuming.
Zeus
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