Off the Charts
In last night's letter we discussed the idea of a potential trend change in the works by highlighting the series of lower highs and lower lows in the S&P 500 over the last few weeks. While Thursday's trading was a small victory for the bulls, as the market jumped out of a week-long base, the bears firmly regained command today as the jobs data could not help the market continue yesterday's action.
Typical of weak markets, this morning's gap up on strong economic numbers turned into an opportunity for sellers to step in and push prices substantially lower and through yesterday's lows. As a rule of thumb, in strong tapes you will see gap downs get bought while in weak markets you see gap ups get sold down. Friday's action really puts another black eye on things, as it most likely will mark another lower high....645 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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