Saturday, October 5, 2013

Support better hold or BOOM

 We finally broke the back of the strength in the
$rut chart  left   . This is vs the Oex.
That could be very important to the overall health of this market.
I think it shows a lot of speculation.
If that is a parabolic top they end badly.
Many think this is about the budget but I think it is QE and the failure of it .
 More signs of what could be real danger.I think this the start of a major drop if support fails.
The market is looking real tired.
I want that 5% to 10% correction to happen
so we can fresh up the charts.

Mid to late Oct is my target for that low.
We are not oversold here, not that the market can't rally but it would be better to fail now.
The red line on the Aroon moved up today a sell signal or the damn thing is running late.

Even the ADX has a divergence with lower peaks.

If we break here it won't be pretty.

Today Friday close, we rallied all day, just about the opposite of last Friday where we fell all day.

50 DMA is all we got to hold us up and that can pop fast.
Look out below!!