The storm hit much earlier than what I expected, the major indices all
broke down today and penetrated multi layers of supports. EUR, the
validated leading indicator of US equity markets, got rejected right at its
EMA200 line a few days ago and is heading back down at an unprecedented
speed.
Today is booked as a super Major Distribution Day with NYDNV/NYUPV ratio
measured at 37.14. Although a rebounce would be assured in the next a
couple of days, but the recovery velocity must be watched closely with
all eyes to determine if a major down trend has began. It remains a mystery
whether today would be a repeat of 11/05/2008 (collapsed big time) or
12/01/2008 (quickly rebounced to a new high).
Given both VIX and TLT has made a bullish falling wadge, which are
harmoniously orchestrated with a flood of bad news reflecting the economy
fundamentals seriously undermined, I\'m afraid that the Summer rally might
be ended this week. As you can see from the charts attached, bull\'s only
hope is lying upon some technical hints:
SPY EMA200 support
EUR EMA50 support
VIX BB Top/EMA200 resistance
TLT BB Top resistance
Well, let\'s wait for the market move to see further indications and act
accordingly...
