Nasdaq Composite update

The Comp monthly chart shows a bigger picture with a relaxed bias (away from daily swings) as nothing has happened yet except that the channel resistance was tested and defended. We need to do more correction or even change of trend is the basic message. Sentiment basically confirms that information and fundamentals ( the real ones at least do not support any chance for an upside break except an inflationary price adjustment. Right now we even have 2 structural crises events the Middle East revolution and the Japanese situation which would gets its severe economic spin by the situation that they are in a 20 year disaster already and have no real bullet left in a lgobal market which is quite in the same situation now for the developed countries. Only insane money printing keeps the dead man walking. Anyway markets need to drop another 10% from current levels at least but I rather opt for a trend change to the downside. For the next 2-4 weeks keep selling rallies as we will make an interim bottom early April and need to exit shorts but that will be discussed going forward as til the 28th at least markets should keep falling.

~ by behindthematrix on March 18, 2011.

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