Tuesday, March 8, 2011

50 DMA?

Analogies are working until they don't. It seems the resemblance with the May-June 2009 market action was broken yesterday.

I still expect the market to not fall significantly further until the Fed meeting next week, but a bigger correction is overdue and what we are seeing these days is the volatility before such a correction.

The market may just need to touch the 50 DMA first and then head higher until next week.

Maybe something like this:


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