(to watch on youtube: http://www.youtube.com/watch?v=3-U66me8Rjc)
Will it be another leg down for the Bears, or a rally back up for the Bulls?
(to watch on youtube: http://www.youtube.com/watch?v=Anxvvx8ACTk)
From everything I see, it looks more likely to fall down instead of rallying. All the charts look bearish... very bearish. I just can't find a reason for the market to rally right now. While anything is possible, the easiest path right now is down. I'm actually looking for a reason to go long, but I can't find one. The charts aren't oversold yet, in fact many of them are over bought.
Does that mean that we will sell off tomorrow again? If the market follows the charts, then yes. If we rally against the charts, then you can thank uncle Ben and the $15 Billion of POMO money that will be injected into the market tomorrow and another $15 Billion on Thursday. The charts say we go down, but you have to think about what the gangsters want to happen.
Will they allow this sell off to continue down to put in the 2nd leg down as most sell off do, or will they manipulate the market with monoply money? I've gotten burnt so many times following the charts, that I just don't trust them exclusively anymore. They are manipulated by the gangsters, and it's usually when you think that the charts are working properly again that they reverse course and pull a fast one on you.
So, I'll only say that the charts are pointing down, but that doesn't mean the market will go down. We are coming to an apex where the downward sloping trendline is going to intersect with the horizontal line of support around 1173 spx. A breakout move is just days away now... maybe even tomorrow? Which way is unknown, but down is the easiest direction.
Tomorrow is the first day of December, and should be a bullish day... but the charts don't support that. There is still lots of negative news out there, which is keeping this market from calming down enough to rally. I do believe we will rally for Christmas, but not until a nice flush out happens first. It doesn't have too be huge to the downside, but needs to be at least 1150, if not 1130 on the spx I believe.
After that, I believe the market could rally back up into early next year. But for now, I remain bearish....