No matter how you look at it, charts look awful this week. News coming from Europe and around the world is bad, bond yields are soaring, and the markets are tanking... We've filled that gap at ~116 on the SPY, that I had posted last week, and we are quite oversold on many measures here, so I wouldn't be surprised if we get some kind of bounce pretty soon. However, I'm getting the feeling more and more that this might just be the tip of the iceberg in terms of correction... see my weekly chart below:
That is just one possibility... but it's a very possible scenario... Needless to say, I'll be taking a much more cautious stance going forward, and instead of 'counting' on a Christmas rally, I might be looking for some short exposure into the end of the year, especially if we can bounce back up to the area around the 50d MA on the daily chart... And of course, this could all change if there are any futher bailouts or intervention in Europe!
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