Tuesday, February 22, 2011

Trend is Getting Late

This is buyable, but you have to realize now that the trend is very late.  This drop is a big sign of turbulence ahead.  Just like in April 2010 when we started getting more volatility after a super strong upmove.  We formed a right triangle on the chart, an uptrend that was unsustainable followed by a sharp drop that eliminated the gains from the past 2 weeks in 1 day.  Usually these formations lead to a few days consolidation at the lower end of the 2 week price range.  Don't expect a scream higher in 3 days like last time, but we'll likely work back up to 1340 by next week.

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