Thursday, June 18, 2009

A Pause In the Correction

Today's light volume action is consistent with a pause in the correction before the next leg down. Breadth continues to decline. I would not be surprised to see another pop tomorrow and/or Monday before we see further declines, however. Overall, the correction appears to be relatively mild so far, which is bullish, but the next wave down will be more telling.

Gold is forming a bear flag, but unless the next move down is a 3rd wave, I expect we will see a rally soon. The form and extent of the rally will tell us what to expect thereafter.

There is not alot to say about the markets today. Let's hope the action picks up next week.

I am having trouble with my mouse, so some comments didn't post. I've got a new one coming, so hopefully it will be resolved soon.


dave said...

Does Wed's hammer candlestick on GLD on increased volume & @ the 50S concern you about being bearish ?

Sorry, to hear that your having trouble with your mouse


Anonymous said...

No, I am not worried about being bearish on gold for two reasons. One, the seasonal pattern is calling for a bounce here bofore heading lower in July, and two, gold is not the easiest market to trade and I am willing to scratch some trades to catch a big trend.