TA for Monday June 14th, 2010

To start off, I will keep my analysis very simple. The three things to watch next week are as follows:

S&P under 1040 = lights out
DOW under 9750 = lights out
50 day moving average crossing under the 200 day moving average = lights out
Euro making new lows = lights out







To complicate things, Elliott Wave theory suggests we are NOT impulsing up, which leads one to believe that large bullish moves upwards are most likely not in the cards. After retesting the lows at 1040 the volume just didnt pour in as one would expect for a bullish move. While prices can continue up, the signs of strength havent revealed themselves yet.

My counts suggest that getting short and staying short will be very difficult. The counts suggest this could really rip downwards at anytime, but my experience tells me that it will take longer than I am willing to wait. The only certainty at this point is the breach of 1040.