Saturday, May 22, 2010


Blue lines are FIB retrace levels to watch for resistance on any rebound rally.
Reversal came in last 10 minutes FRiday, mostly as result of options expiration action. There have been 6 90% plus down volume days since April highs.
Some say action at top in topping inidcators NOT consistant with previous major tops, major uptrend may still be alive. Blame sovereign debt crisis.
VERY OVERSOLD MKT, 2-7 day rally would be consistant with previous experience after big downside days....a selling exhaustion of sorts, but final lows of THIS correction since NEW low was put in may not have been registered.
MANY I know are already rushing in predicting a bottom and buying up stocks. Maybe that works but these were in bearish camp so easily switch back.
I am torn between playing the oversold conditions and not 100% sure LOW of correction has been put in.

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