So the lows of this week may largely hold on the main indexes supporting a rally/bounce advocated by Zeev and others a la Feb 2002 rally/bounce. Once this is over we resume further decline toward COMP 1200-1300.
My reading of today's charts for the COMP leads me to a similar conclusion.
The weekly chart shows a tepid bottoming candle. (See the chart for more extensive comments on this.) stockcharts.com[g,a]weclyiay[df][p][vc60][J4902162,Y]&listNum=16
The daily chart shows a two-candle topping formation, which is pretty weird after a one-day "rally" which didn't even manage to break a trendline. stockcharts.com[g,a]declyiay[p][vc60][J4901924,Y]&pref=G
The hourly chart has what I'm going to term an inverted Head & Shoulders which will stay intact through any conceivable retrace -- or even a dip below this week's low, for that matter. stockcharts.com[g,a]eeclynay[d15][p][J4902178,Y]&listNum=16
All-in-all, what this tells me is that the Comp has put in a really crappy bottom, (the weekly chart shows this), but that we aren't going up until we first go down, (the daily chart shows this), and that we will then have a cruddy little rally of about 100 points, (the hourly chart shows this), before resuming a slide to new, lower, lows. |
