Tuesday, August 2, 2011

Pretty bearish price action yesterday

Pretty bearish price action yesterday as the monster up gaps filled and then some. Economic numbers continue to surprise to the downside in a sign that things are slowing down again.

Technically we are testing the 200 day moving average again and also the monthly trendline from the March 2009 lows. I would bet that we will bounce somewhat for a few days off these levels (cumulative ticks did come back and finish positive in the second part of yesterday's session) but overall I'm not that optimistic about the longer term, although a fair few of my quant subscriptions are still presenting research that favours the long side in the intermediate term. 

Unemployment reports could be quite a trigger coming up this Friday.

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