The Qs reversed last week against the 12 wk and 50 wk MAs, and again today below last week's high. Markets broke below last week's low on Tuesday, and it appears that the short term trend remains down despite the 3 day rally. Optimistic targets are at the lower Bollinger bands around 50.00, but 51.00 would be a more probable conservative estimate. A move above last week's high will negate the bearish potential. It is possible that we will see lower lows, but the EW crowd seems a bit too confident of that fact.
Sentiment is finally beginning to turn bearish. Another week or so, and it may be meaningfully so. I am looking for a low tomorrow or early next week, which may lead to a multi-week rally. into at least early December.
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