Friday, August 27, 2010

Sorry I can't type faster.

There's the triangle, there's the breakout as I was typing the last post. Note volume is curious, the red spikes should not be there and the breakout should have more in the way of volume. It's possible/probable that is retail short activity. Smart Money will support the market if they feel it's needed, but right now they are counting on retail to create that momentum-especially this am's shorts under Dow $10k. I'd suspect they'll come into the market at some point and cover, I'm not sure we have seen that yet and may not until the gap is filled.

Watch for a retracement that does not fall below the triangle, it should be on lighter volume and then a push to new highs-hopefully on heavier volume and then we can put the question of this triangle behind us. Remember, this is kind of knit-picking.

No comments: