Wednesday, December 2, 2009
A Weak Move to New Highs
More proof that this market can't go too much higher, that this bull rally is getting weaker, that we are at or close to a Market Top, is evident by the way we moved higher this morning. We broke a new high for the year, we broke a resistance level that has been holding strong since the 16th of November, yet when we finally did break through, we couldn't hold that level for more than one hour. That's a pretty weak move and a nice bull trap. Now we are trading back down below the top of the range again. Lets see if we can move below $111.20 - $111.15 now. Like I said yesterday, if we can confirm a down move below that, we should be able to get down close to $110.34. Some levels to be aware of are support at $110.92 and at $110.70 that may slow the descent.
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We did see a nice move down after crossing $111.20, however the support formed by yesterday's open was too strong. We still should head lower as the week progresses. Look for this to happen on Friday if the pattern mentioned in yesterday's post proves to hold weight.
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