Major Markets

As alerted at 4/27/2009 3:13:26 PM, markets formed double top, after fading the morning GAP making the HOD at SPX 868.83, DOW 8122.56, and Nasdaq 1700.53, then retested the top and swing to near the LOD. No sell in May and go away? Also, noted the series of diamond formations for the last 5-6 weeks in consolidation mode in a price channel after initial thrust from the SPX 666 low. Evidently, much waited lower market targets will not be see anytime soon at this rate Even though markets are continuing to show negative divergences, markets are still trading in the recent up trend. Shall we see a confirmation of a meaning market correction? In this volatile markets, VST traders should be careful thinking that markets will break to the downside as markets are compressing to make a next move. Anticipating a pull back at this point is an easy expectation, but markets can surprise many, therefore, need to be cautious. Market Formations: Most of traders are looking at the same formation: Inverse H&S As shown on the chart as it is quite obvious formation at this point. As noted, markets were retracing only Fib 23% since the March rally Started, and we are still seeing the similar market actions as we have Seen during the last several weeks. The obvious expectation at this point is inverse H&S, while H&S formation is quite desirable and hoping for. Waiting for a directional confirmation is quite obvious at this point. We can only hope for, PLEASE SELL and GO AWAY for summer.

Major Markets in diamond/triangle formations
SPX is showing a diamond formation as shown below.
Also forming a symmetrical triangle with a window of 845-870 +/-.


SPX is showing a diamond formation as shown below.
Also forming a symmetrical triangle with a window of 85 - 87 +/-.

DOW is showing a diamond formation as shown below.
Also forming a symmetrical triangle with a window of 7800 - 8100 +/-.

Nasdaq rallied along price channel for several weeks

1650 - 1750 +/-. pivots

$BKX trading in symmetrical triangle/diamond formations
30-36 +/- pivots

Reading Bernanke boss

My posts on a website when I saw Bernanke alias was posting on the site.

But as noted, I encountered a bit of miscommunication on the site. Now, we can see that the points which I was referring to were corrected. The reason that I am mentioning this is that Bernanke mentioned about "Bernanke factor". It is obvious that, based on this, Gold speculation is going wild as noted on the post. I am not 100% sure whether the poster, "thedocument" is indeed Bernanke, but the posting style seems to be.

As noted during the last week, markets closed with symmetrical triangle formation and diamond formations. While I prefer to see a meaningful correction to SPX 1250 +/-, I would wait for a confirmation as "seasonality" is favoring to upside which is shown by a positive divergence on SPX CMF. I do not think that we are similar market and economic environment as mid 2006. Markets are in late stage of bull market and not in a stage to start a new bull market. With the current heating up inflation and slow growth, it would be better to see a meaning market correction.

60m price actions are oversold, however markets are closed below supports, e.g. Qs closing below 20/50 dma. Therefore, we will likely see further sell off if Qs breaking 51 support which is a gap-fill support. SPX closed relatively respective support; so, price actions on Monday would give us a little more guidance as we are looking a bull or bear directional confirmation. Good luck