RE: RE: RE: Candelstick hammerIt seems things are happening slower at every turn so 1130 S&P will probably have to wait for next week. We may see 1150 or so this week. Ironically, Wednesday, the day before Thanksgiving is now looking like it has the most probability for the largest drop in the mkts this week. Today the S&P crawled back up, but the financials were much weaker and barely rallied.
Portugal and Spain will be in trouble soon enough. Out of the core countries France appears weak, and might be first of the core to falter.
The bear mkt continues from 2007. We know this because the financials continue to lead down (as they did in 2008). For example, S&P rallied slightly over the April 2010 highs on Nov 5, but financials only made it back to 61.8% retracement of the April highs. There can't be a bottom to the mkt, or new bull mkt, until financials bottom out. We have a long way to go to finally hit bottom. This is also why I prefer to short financials - they are weak.
Goldman topped in Oct 2009!
Also, there is contant mention in the media of the USD being "burned", "devalued", "destroyed" etc by Bernanke. The USD index actually bottomed in March of 2008. Thats right, it bottomed before Bernanke started printing dollars. Since then the USD has been rising for nearly 3 years now. It's still the reserve currency and ironically will be a safehaven when mkts collapse. Bernanke is trying to fight the bull mkt in USD, and, of course, he will fail. There is no velocity so he can print away with no effect in the short or medium term. Longer term in years time USD has serious problems, but for now the dollar is king.
SC