Friday, May 20, 2011

Another Inverse Head and Shoulders Pattern

The market rolled over and started the bearish wave I predicted yesterday and now it remains to be seen if the bullish formation wave will resume on Monday. Today's market action created another inverse head and shoulders targeting 1377. The close under the TA is obviously negative but the bullish channels are still in place as the selling today held at support levels. And unless these key support are taken out then we will have seen a bottom in the near term future. Furthermore, it looks like the correction in commodities is nearly over and that favors more upside for equities so we'll just have to see what next week has in store for us.

Have a great weekend!

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