Thursday, December 30, 2010

Gap down or up?

I think the next session will be telling of what the market really wants to do. Prices did turn down today but stopped short of the level I am watching to confirm a bearish turn. This sort of price behavior usually points to higher prices, however there is also signs of a coming bearish structure in place so we'll probably get a strong gap down in the next couple of sessions or a gap up to break out of this trading range. The market is obviously overbought so probabilities favor a sell off sooner rather than later.

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