Tuesday, December 20, 2011

Rough Monday...

The market gapped up yesterday but then fell hard after some news from Europe came in. As has been the trend, the market gapped back up the next day after bad news from Europe.

SOXL is at it's lowest since mid-August. ERX and FAS are also at the bottom of their wedges. As I said on Sunday, I believe we'll have a short term uptrend. If we don't, SOXL, ERX and FAS could see their bottoms fall out. It could get real ugly.

Many stocks are at sitting at support right now. I'm also starting to think that if the market can rally this week, it may extend another week or two. Everyone wrote off the Santa Rally, but there's a chance it could still be in-play. I'm leaving the long term trend as down, but that may change later this week. We'll have to see how this week shakes out.

No comments: