Tuesday, September 28, 2010
The powers that be seem to be doing everything possible to keep the market levitating into the end of the month. However, a few cracks are beginning to emerge. They are subtle though and hard to interpret. For example, AAPL had a sharp plunge this morning and appears to be recovering in 3 waves. The pattern in the Qs is the same. These events could just be shakeouts before the market moves higher, but the overlapping 3 wave movements in some indexes look more like ending diagonals. It seems that as long as the Euro continues higher and the Dollar lower, the markets will move higher as well. We see the same action in the precious metals. This clear correlation makes the market vulnerable to a sudden selloff if and when the Dollar bottoms, which may be sooner than most think.
Posted by R. Craig Pritchard at 2:24 PM