21 Feb 2013

We are on the 2nd day of our downtrend, and although we see it moving down for days, we can expect rallies to happen.  Maybe as early as tomorrow or end of day.  The 60min chart gives us a clue as to what has happened so far and the Stochastics has shown an oversold reading.  It can stay oversold for a long time since we are on a down trend so we are careful to call a rally to prematurely.  Good indication of one would be if we see a divergence with price and a continued move up out of oversold.  My analysis leads me to believe that we will have a lower low and perhaps down to 1490 before we rally up.