Friday, May 7, 2010

SP's ...the Morning After

From Apr. 28 Equities and the "Risk" Trade
....this thing looks done. Unfortunately. Implications for the next 5 years are grim. Imagine the mood out there if the SP  goes back to 878, the .618 retrace of the move up. And that is more likely than not.....
there is a high risk of both Equities and the Euro coming under severe selling pressure over the next several months , say until next October, with a race to the USD . That means a race away from all other assets. 
That includes energy."

 click to enlarge

More to go . At least a series of 5th waves of increasing degree until we complete the 1st wave down from the recent high.

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