Tuesday, May 25, 2010

Buy signal negated overnight

The Dow futures broke 10040 overnight and negated the short term buy signal. As I write this, the futures are down 200 pts. in pre market. Next support is at 9622. There is the weekly s1 Pivot at 9800 that may hold today. We are also testing the February lows. We are very oversold and due for a bounce. The 2010 Bradley Model I've written about, shows a fast deep decline into August 10th. The 2010 model goes down to it's lowest reading in 80 years(when the great depression started). Dow 9000(monthly 200 moving average), is the 50% Fibonacci retracement off the March 2009 low. It's going to be a long UGLY summer for equities.