Thursday, May 23, 2013

Riiiiiiiiiing!!! Riiiiiiiiiing!!!!

Sometimes you have to ring twice. This is a classic blow off top and reversal. 
Yesterday was itself a classic "reversal day", including taking out the trendline it had been moving up during May.
The catastrophic collapse in Japan overnight and the follow through this morning in our markets, strongly suggest that all in all, after this record run up, we're heading for a record run down. 

Can the Fed prevent it? That is the big question.
I will have to follow up later today with a Fibonacci and Elliott take on charts, but for now "sell in May go away" seems to be true again.