Having just woke up I read my email. I follow which way the Dow is heading as that moves Risk On and Risk off. I use many different services to try to get better insight. I read the following this morning which does not mean it will happen. Then we have important news out today which can confirm these technicals and add to it with bad news. For what it is worth I will post part of it, which is technical in nature.
Today's Blue Chip Stock Market Comments
Pretty fascinating place tonight. If you go to the chart on page 21, we see that prices have reached the precise intersection of two significant intermediate-term trend-lines. The first is a declining trend-line connecting the May 2011 and July 2011 tops. Right here, right now, January 10th, 2012, is the third touch point on that declining trend-line. The second trend-line is a rising line that is derived from the March and June 2011 bottoms, and the October 2011 top. Right here, right now, January 10th, 2012 is the fourth touch point on that rising trend-line. This is a terrific high probability spot for a significant trend turn down. The point is, every time stocks have hit these trend-lines, either trend-line, there has been a significant trend-turn with the exception of August when the stock market was in the middle of a crash. These two trend-lines have formed a huge triangle. Prices sit right now at the intersection. Stereophonic resistance. A significant trend-turn should therefore be imminent. Today is a Bradley Model turn date. No guarantees, but wow. The Industrials had a major top on January 14th, 2000, the inflation adjusted all-time high, almost exactly 12 years ago. The S&P 500 and NASDAQ Composite had their major tops a few months later. The NASDAQ Composite has not come close to that top since, and sits about half way there over a decade later.
On page 20 we show a chart of the VIX which is completing a Declining Bullish Wedge pattern, suggesting the VIX will soon start a significant rally, meaning stocks are about to fall hard.
Gold is strong this morning at $1646 US SPot...
The Dow Futures are down 5 and small range in EUR/USD.
Things should happen today to move markets as new information is digested.
With ECB it is more the Press Conference at 8:30 AM than the announcement unless they cut to .75%
We will see.
Today's Blue Chip Stock Market Comments
Pretty fascinating place tonight. If you go to the chart on page 21, we see that prices have reached the precise intersection of two significant intermediate-term trend-lines. The first is a declining trend-line connecting the May 2011 and July 2011 tops. Right here, right now, January 10th, 2012, is the third touch point on that declining trend-line. The second trend-line is a rising line that is derived from the March and June 2011 bottoms, and the October 2011 top. Right here, right now, January 10th, 2012 is the fourth touch point on that rising trend-line. This is a terrific high probability spot for a significant trend turn down. The point is, every time stocks have hit these trend-lines, either trend-line, there has been a significant trend-turn with the exception of August when the stock market was in the middle of a crash. These two trend-lines have formed a huge triangle. Prices sit right now at the intersection. Stereophonic resistance. A significant trend-turn should therefore be imminent. Today is a Bradley Model turn date. No guarantees, but wow. The Industrials had a major top on January 14th, 2000, the inflation adjusted all-time high, almost exactly 12 years ago. The S&P 500 and NASDAQ Composite had their major tops a few months later. The NASDAQ Composite has not come close to that top since, and sits about half way there over a decade later.
On page 20 we show a chart of the VIX which is completing a Declining Bullish Wedge pattern, suggesting the VIX will soon start a significant rally, meaning stocks are about to fall hard.
Gold is strong this morning at $1646 US SPot...
The Dow Futures are down 5 and small range in EUR/USD.
Things should happen today to move markets as new information is digested.
With ECB it is more the Press Conference at 8:30 AM than the announcement unless they cut to .75%
We will see.
