Tuesday, April 27, 2010

Selling Finally Show Up

It appears that the SP500 is headed to at least the 50dema around 1167 if not the January high around 1150 by the end of this week or the first of next week at the latest. That should mark the end of this reaction. Afterward, we should expect a retest of the April high at a minimum, but more likely a move to 1260 by late May. The McClellan Oscillator still has not broken down, and I am still waiting for an oversold condition.

Oil has broken back down into its trading range. It must hold above the $75 level or risk breaking down altogether. Gold has begun its last leg up in the double zigzag upward correction. I expect that gold will top at the same time that the stock market reaction ends.

BWLD is selling off more than 20% afterhours. There is a good chance that the recent high completes an ending diagonal triangle. If so, the downside target is 14.50. However, it would be best to wait for a countertrend reaction to consider a short trade.

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