We’re all familiar “good news is good” and “bad news is good.” Are you ready for “good news is bad?” In a sign that things are becoming curiouser and curiouser, slightly better than expected employment numbers and flash PMI have sent the market down this morning. Bullard, a non-voting Fe governor, made things worse by pronouncing QE3 iffy.
While the dip is slightly stronger than we expected, this is the back test of the neckline and .886 Fib (at 1404.64) we were expecting.
We’re flirting with breaking the wedge. If this should happen, look for support at 1404.64. If that level fails, then it’s likely down to the channel midline around 1390.
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