Futures take a hit. Could it be that NYSE 9455 put in a top yesterday (see earlier post)? Still too early to tell, but there will come a time when the selling will not be bought. Watch YM monthly pivot at 12764 and further down, 12736. Small caps should theoretically take the biggest fall especially after hitting many targets yesterday including monthly R2 and fib projections. We have the same set up as last spring with a BOJ rate hike (they did it in July, but announced it earlier) and a threatening rise in core inflation (last June). Bulls are still in full control, but I this time I would be weary of any opening bounce. If NYSE ADVDEC line is lower than -2000, don't play hero. If it stays at -1000 or less, bears won't gain that much traction.
For now, we follow price and price alone. YM weekly pivot is at 12717 should 12736 fail. Bulls did manage a reversal at 12722 yesterday and that is close enough to 12717. Big test today of their resolve.
For now, we follow price and price alone. YM weekly pivot is at 12717 should 12736 fail. Bulls did manage a reversal at 12722 yesterday and that is close enough to 12717. Big test today of their resolve.
This entry was posted
on Wednesday, February 21, 2007 at 2/21/2007 08:35:00 AM.
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