I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Friday, May 14, 2010

Is this move "for real"? I say yes

I think this definitely has the makings for a very severe selloff in the coming weeks. Per my posts the last couple of weeks, I have been counting this as an impulse down with more more down to go. I will update my counting in a moment, but first here is a chart of the ES

More down volume today than there has been during the up days of the last 3 days. And the down candles the last 3 days are also the ones with the largest volume. But pay close attention to the volume based accumulation / distribution (bottom line). It has already made lower lows! Smart money seems to be selling this pig (IMO).

Addition 3:20 - Current count

Addition 3:25 - Larger Degree count

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