19 Jun 2013

Reaction day did not disappoint.  The bears are happy campers today, but it is still too early to celebrate.  Although we had a substantial move today it wasn't enough to be considered scary, and it might just be precautionary to take some profits by some and sit and wait to see what happens next before re-entering markets.  I think what is important is how the world markets see this FED SPEAK as they open tonight in Asia and Europe in the early morning.

It is hard to tell if we have a bearish engulfing candle on the daily chart. If it is, we could be in for more downside.  The patterns that I have been drawing the past few days to week has turned from a potential abc to an abcde rising wedge.  This pattern is also bearish for prices.  We will be able to know soon enough from the attitude of any downside move.  We have another reactionary day on Jun 28th and its considered a strong one.  Whether it is a bottom or a top will depend where prices are when we arrive on that date.  One thing to note also is that we have once again broken the 60min charts 200ma line shown below.  This is the range that traders are going back and forth over and should see some sort of resolution sooner than later.

Mid-Term: DOWN
Short-Term: UP

We remain on the side until both indicators agree with each other.