May 19, 2009

5/18 market review

My take on tomorrow: down

Despite today’s huge rally, no buy signal on my system yet. Also, the low volume makes the rally very suspicious. The high of the day hit exactly 61.8% retracement of this pullback and this satisfies the wave 2 condition, which usually retrieves most of the wave 1. We might open higher tomorrow but the gap won’t hold if we have any. Now we have too many unfilled gaps since 666.

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