Sunday, February 01, 2009

Technical Picture - Waiting for a Lower Low

Bearish trend intact, awaiting a bad bank stimulus plan. A well thought out plan could take weeks or months to develop, at which point we should get a technical bounce. In the meantime, we are likely to retest the November lows.

On the weekly chart, the bearish trend is intact until we can take out the initial reaction high from the lowest low (January high). If we breach the Nov. lows just slightly, that scenario is still valid, but if we make a much sharper low, then we start all over again.

4 comments:

smtrader said...

Hi Mike:
It's the market...sort of ho-hum. We seem to share some similar views on the state of things. Check out my blog if you like. Comments & feedback are welcomed ( www.lastchipstanding.com ).

smtrader

smtrader said...

oops, sorry Jamie. Not sure what got into me calling you Mike.

smtrader

Jamie said...

SMTrader,

Very similar indeed. I added you to my blog links.

smtrader said...

Jamie,
Thanks. I'm just starting to organize my blog. I will put up my blog list soon and your link will definitely be in my list along with Trader-X (I found your blog from Trader-X blog.)