Markets are trading up in low volumes and manipulated low volatility suggesting to lure in as much as sideline cash into markets. Again, while it looks that markets are manipulated to continue to trade upside, it is highly manipulated markets with hidden risk to downside with earning report excuse. It's better to take vacation than to be fooled into markets.
Internals and market momentum is weakening as markets traded up 25% and are now showing distributions. Markets have not corrected since the rally started on 3/6/2009; and, those who missed the rally would be taking a high risk to enter markets during the Q1 earning report month in April.
The rally period has extended and is due for a pull back which can be seen market internals and momentum. Markets will likely retest the bottom near SPX 666 and it is unwise to chase markets at this point except daytrading purposes.
Intraday 60min charts are showing negative divergences as markets are luring in sideline cash to unload positions from the low on 3/6/2009 and the rally from the low is now over extended. The price level and formation is reflecting the economic condition which will take years for Americans can accumulate the savings and wealth which is spent during the last decades.
No comments:
Post a Comment