Yesterday’s melt-down was a good start on the Bat Pattern reversal, reaching the white .618 on its way to the cluster of moving averages we discussed yesterday and coming within 3 points of our downside target issued in Monday’s member section [see: Strange Brew]:
Whether or not the rumor is true or the interview even occurred or the finance minister was telling the truth…who knows? All I know is that the .886 was tagged and our bias is to the downside from here at 2128. First downside target is 2105.34.
This morning, we have blow out data on personal expenditures which has initiated a sharp rally off of absolutely no technical support. While the data’s benefit to the economy is dubious (are higher gas prices really going to aid in a recovery, or will we all spend less somewhere else?) the 14-pt spike in the eminis since yesterday’s cash close is a quandary.
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