Barry, I believe we had a break of the "neck" in a HS formation earlier last week on volume of more than 10 MM shares, Friday move back above $97 was not with particularly heavy volume (7 MM)and most of the volume was, IMHO, distributory (between $103 and $104). If volume increases again above 15/20 MM shares or so and we take out $105, then I would consider the move under $97 as a fake, right now, however, I consider it a prelude to a break down to the mid 70' or so. Currently, I am in a mode of fast in and out until the technical picture clears. The NAZ has recovered a lot of ground since RMBS vaulted to the mid $120', but not RMBS, we have to take this high in the next two three weeks. If not, we will have a massive double top formation, quite "ugly". While I expect that high to be taken out, I have no idea if it will happen this week or if we first have to go back and establish a "launching pad in the $70/$80 area.
Zeev |
