While this two day rally is impressive, I'm not convinced we've seen the lows for this cycle. I look to the small caps for broader guidance and they have yet to break a major level of potential resistance and have merely climbed back to the breakdown point on mediocre volume. Even if the market plows higher, there just isn't enough buying interest to propel us through all that resistance. I still think the market needs a capitulation event to draw in significant buyers. Tomorrow may be pivotal, will the GDP # confirm a textbook recession?
Monday, November 24, 2008
I'm not convinced
While this two day rally is impressive, I'm not convinced we've seen the lows for this cycle. I look to the small caps for broader guidance and they have yet to break a major level of potential resistance and have merely climbed back to the breakdown point on mediocre volume. Even if the market plows higher, there just isn't enough buying interest to propel us through all that resistance. I still think the market needs a capitulation event to draw in significant buyers. Tomorrow may be pivotal, will the GDP # confirm a textbook recession?
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1 comment:
I expect us to bounce off of the 2002 lows once or twice with the result either being either a breakdown to your 'ultimate fib' lows or a recovery that will set up for the ultimate head and shoulders formation.
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