Finally, bearish divergences caught up with longs. All that bullishness collapsed at the close in a dramatic fashion and is quite negative, even though indices ended in the green. I had a short trigger at NQ 1723, but missed it by 4 points as we were not even able to hit weekly R1. QQQQ now back below 42 and all those calls are weighing on the ability of bulls to hold on to gains. In particular, the failure of the DOW once again to get past 2005 highs and even hold above 10900 is something bulls can no longer ignore. The DOW theory (TRAN/DOW) is starting to take effect and bulls have very little time now to prove to us that they mean business. Oil inventories tomorrow and bulls need crude to slide fast or it will all lie on the shoulders of the INTC update Thursday.
This entry was posted
on Tuesday, December 06, 2005 at 9:00 PM.
