Wednesday, July 01, 2009

Technical Picture - Resistance Holds

New month/quarter cash inflows prompted some early gains, but everything stalled after the first hour and shortly after taking out yesterday's highs. A lot of midday chop was followed by selling into the close. Tomorrow's jobs data could provide some direction, but for now we continue the pattern of low volume on up days and higher volume on down days.

FUQI, one of IBD's leader stocks looks ready to roll over soon. Why? We broke out of the continuation triangle on euphoric volume spikes. Like capitulation, euphoria usually foreshadows the end of the move. Today's red shooting star is another hint.

1 comment:

AnthonyB said...

Great call on FUQI. I missed this one. I should have caught it. Great short that was "pre announced".