Sunday, August 22, 2010

Full moon reversal?

The Dow Jones and S&P both broke their 50dma last week. The 1064 gap on the S&P was filled Friday. In my opinion, this chart pattern above, does not look bullish. The right shoulder failed at 10700. Now it looks like we started a wave 3 down last Thursday, after doing a wave 2 consolidation earlier last week. Stochtastics are in the oversold area, so we may rally this week. We also have a Full Moon which usually bings a short term reversal. Look for support at 10,000 and 1040 this week.