21/05/2012

Watch up for sudden rallies.

All indexes are oversold and many traders are waiting for an opportunity to start a lasting rally. There are also many gaps to be closed from last week and beyond. The fundamental situation from this morning news about the Euro crisis seems less alarming with new initiatives coming up to EU meeting  on Wednesday. There is lot of money to be made by traders if a short covering rally could start.
First sign came  15 minutes ago when main indexes suddenly jumped. But they must have the 2 hour trend on their side to manage. On the other side there are sellers who want to get out of stocks. It could be very quick movements that I cannot foresee so please watch the small trends carefully.

Currently many 1 hour trends are up but all 2 hour trends are down so far.

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