09/10/2012

Main indexes and the EURO has all broken on downside on the 2 hour charts

So far only one and a half day has been traded this week and my forecast was a calm two days but even though the weekly movements are very small the 2 hour trend could very well take the markets further down later today. NAS, IBEX and CAC could easily start falling because there are no support lines to stop a sharper drop. Apple's break down Monday could very well continue and take the rest of the markets lower. Alcoa report after close tonight could make the markets vulnerable as well in advance.

It seems that the test of the tops will not materialize now. My feeling with all the bad news from IMF and the World bank regarding the global economy and the small volume in the markets could easily make the technical pictures become bad.

I have earlier said that a fall could come in the weeks October 15 or 22 but I have also pointed out the danger of  next Friday if no new highs are taken. I now think we should be vigilant already today and the rest of the week and follow the two and one hour trends carefully for the time being.

No comments:

Post a Comment