Multiple upside momentum non-confirmations of the upleg off of the August 11 low at 73.39 to Wednesday’s high at 77.96 suggests strongly that the Pharmaceutical HOLDRs (PPH) is overdue for a correction.
In the hour that has lapsed since the FOMC announcement, SPY has gyrated from 132.76 to 132.06, back up to 132.44 in what looks like another attempt to thrust to new highs towards the top of the broadening top pattern.
Mike Paulenoff writes that if 39.77 is violated, then we will have an initial confirmation that a meaningful correction is in progress that should press the QQQQ to 39-38.80 immediately thereafter.
Although the major market ETF's certainly do not yet exhibit much if any weakness, Mike Paulenoff's pattern and momentum work continue to argue that risks are mounting quickly for holders of long positions, regardless of what happens in reaction to tomorrow's expiration Friday.
The very big picture of crude oil prices shows that so far this week the price structure has sliced below the trendline from December 2004 and is heading for a very strong congestion-support zone between $61 and $59.
Tuesday’s high in the GLD gave all the appearances of a thrust out of a 9-week sideways, however, since then the price structure has done nothing other than plunge.
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