alt, i'm actually a lot more bullish than that, i thought (as many other did) that the june low was a fakeout low and we were gonna start a rally, however there remained some elements that were undone, mostly too much bullishness by otc players in rydex, both regular and leveraged, the last leg down caused them to throw in the towel and as anecdotal sentiment you had also newvision and spirit temporarily throwing in the towel.
Now how much bearishness do we need to create this bottom, do we need as much or more the the april low, looking back at the april low, the doom and gloom was extremely thick, mad dow disease, bears pictures in the newspapers, bears on the cover of magazines, the CFZ thread with 500 posts per day, can we expect a revisit to that level of bearishness so soon, maybe not, i don't think so.
the nasdaq has a downward angled H*S pattern from the april 17th breakout, tomorrows breakaway gap looks to me like a failed pattern, and i believe we could rally above the may top in nasdaq, the whole moves sideways looks like a bull flag now, because of the failed H*S.
the news events are less important the the reaction to the news. |
