Tuesday, January 4, 2011

Brief Comment

Just a heads up that yesterday's advance poked the QQQQ/Nasdaq 100 above the Oct 2007 bull market highs by a small amount. I had mentioned that it will probably be taken out before any meaningful decline.

Now with a relatively large gap up yesterday (to start a new year) and at very overbought conditions on many levels, we could see a reversal soon with at least a healthy bull market correction to follow. This morning made a gap up too, so look for a bearish engulfing pattern or other bearish reversal pattern to confirm a possible reversal.

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