A Weak Bounce Today

Here is the big picture chart of the Dow Jones. That looks like a top and not like a bottom to me.

On a side note, there is a lot of talk right now about how this high looks very much like the top which preceded the 1987 Crash. There is also some mystical planetary alignment right now that is similar to (worse than) 1987. I don’t follow that stuff, but I’m sure that CNBC will parade some gypsy around the TV studio tomorrow talking about it, because tomorrow is Friday the 13th…




Back to business. One decision at a time…

Here are the updated daily and 120-minute support charts on SPX. If the 1,085 range cannot be broken then I look for a possible bounce in the 1,065 range and then the 1,050 range. The trend is now down, so I am not interested in buying dips for the time being.




The NASDAQ 100 hit a key support level and it has held so far. The same goes for The Euro. Europe is falling apart. The “stress test” was a bunch of bs. Ireland and several parts of Span cannot find buyers for their bonds and the EU is being forced to finance their debt auctions this week. Credit Default Swaps for the PIIGS are going parabolic again.




On the 15-minute chart, you can see that the Euro has a big decision at 1.282. If that level holds, then I would love to see a rally up above 1.293 to set up the reversal pattern. I expect some resolution overnight on this pattern in the Euro and will deal with what exists in the morning.