Tuesday, January 13, 2009


Okay, that’s a pretty bearish looking rollover. Rounded patterns like that generally have more meaning and staying power than sharp V shaped spikes. GE being downgraded by Barclay’s seems to have set that off. That’s an example of how the fundamentals must be considered in concert with the technicals.

Here’s a chart with DOW futures on the left and S&P futures on the right, note the rounded rollover:

Here’s an updated 10 minute chart. Yep, another bear flag was correct and it rolled within minutes of last post. The 856 area should be strong support, but if it breaks down could be trouble. Again, we are below the 50 day averages and that is not bullish at all that we couldn’t stay above them.

Bonds moved up some in their channel on the lower equity market, but they are still inside their channels. Again, if /ZB breaks above 135, I'll be exiting my short TLT play for now - hasn't happened yet.