Sunday, August 15, 2010

Summary of Weekly Report

Last week and the week before I said: Prospectively, the rising wedges seen in numerous charts and the negative divergences on MACD Histograms suggest a serious market fall is coming – but the market may have more time to run up before those forces play out.

This week the bearish breaks occurred. A great deal of unanimity exists in these charts. This market can still move higher in the medium term, but the probabilities now favour the downside. A short-term movement up is likely – and is just as likely to fail. We shall see. At this stage I’m medium term bearish with the possibility of a move up this week.

As I see it, the one light on the horizon is Gold. The Gold Miners are moving into a favourable seasonal time and the trend for them is currently up.

Cheers and good luck
Red

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