Wednesday, 2 September 2009

The return of the Bear

Friday 28 August and yesterday, 1 September felt good. Long may this continue.

Risk most likely topped for a while.
Below is an hourly chart of XLF, the financial ETF. We have likely finished the third wave of the very first (of many) impulses down. I believe that mid-August lows (labeled "4" on the chart) will provide several days' of support, and meaningful bounces. For most broader averages, those levels are about 2-2.5% lower.

Bring it on!

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