Citi technical outlook – market update

The Citi weekly chart has a clearly visibly weakness which has to test a minor support at 11.20 but, more importantly, just below 10 around 9.5. That is the target for now but in order to complete the weekly 13 count it has to drop far lower. That is a stock where selling strength is a good trade unless the SEC comes up with one of its pathetic “no-shorting” rules. The downtrend is supported by an overall weakness in the BKX, which needs to drop below 50 soon to complete the current downwave.

The markets remain under pressure as people recognize that rate cuts are not a remedy to put a hold on a structural crisis and bad news keeps flowing in. Tomorrow’s jobless numbers might be a days mover but the real bad news is that the Rydex even rose to .90 – that makes the market really vulnerable to the downside. I show that chart later to give an idea.

~ by behindthematrix on November 7, 2008.

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