Thursday, June 26, 2008

The House of Cards...

....comes tumbling down, doo dah doo dah.
Where do we go from here? The path of least resistance tells us...
DJIA - ouch, how low can we go!S&P 500 still got a way to go to truly test those March lows.Same with the another 150 points to lose before the March lows are firmly tested.The Russell 2000 as represented by IWM just broke through it's Head and Shoulders top pattern. Broke through the neckline, tested, and may not look back.Now for Gold and Oil. Oil, as represented here by USO, is basing around it's highs. One bad news report could send us to new highs yet again.
Gold, as represented here by the ETF GLD is back up to resistance. Although the near-term trend is down, the momentum divergence is showing a positive slope.
And last but not least, the U.S.Dollar index. It had a run for a few weeks, but looks primed to test the lows it became comfortable with.

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