I can't find anything bullish?
I wasn't sure what to say this weekend, so I'll keep it short and simple. I looked hard for a reason to see a gap up on Tuesday, but I can't find one? Yes we are overdue... yes we need one... but I just can't see it in the charts yet? Last Thursday I did a video explaining that I expected a move to 1040 on Friday... but it didn't happen?
Friday had everything going for it. It had light volume, a holiday weekend in front of it, and traders leaving early... but it failed to rally? In fact, the brief rally into the close was sold off in one 10 minute bearish engulfing candle. Not good for the bulls at all.
While I still think we will see that 1070.50 spx fake print soon, it might not happen until we put in a lower low first. While we did that last week, it didn't come with any panic selling, and that's what concerns me. We need a capitulation day to wipe-out all the bulls, and get every bear back in... short again.
Most bears probably closed up their positions on Friday, expecting a rally next week. After all, who would be brave enough to hold shorts over a 3 day weekend, after selling off for 2 weeks straight now? I'd say those bears are in cash, and I'd guess that there were some bulls that went long into the weekend... but not many.
I think it's going to catch a lot of people off guard if it goes down instead of up on Tuesday. Anyway, I'll keep this short, like I said. But one other thing... you should watch this video below about the BP disaster, it confirms what I thought all along... it was another false flag event.
Happy 4th of July everyone!
Update: This is a very interesting video by Karl Denninger, showing how the market in currently (as in July 4th, 2010) being manipulated up and down with fake bids and sells. Watch it... it's worth your time.