Tuesday, May 18, 2010

Gap Fill Coming

The market has to shake out more bulls before going higher.  There are too many dip buyers waiting to unload on any rips.  The market needs to flush those guys out before it makes a strong move up.  Any rallies from this level will not last more than a day.  This euro weakness will eventually cause some meltdown, as currency havoc often leads to fear.  We aren't there yet, but we could be in a couple of days.  1090-1100 level is a good spot to try a dip buy.  Right now we're still too high.

2 comments:

Petsamo said...

The DAX is forming another inverted head & shoulders? :O

Anonymous said...

It wouldn't surprise me in the least bit if Europe rallies on Wednesday. -Petsamo