"Markets undecided. Bears have Edge!" - 2/19/08
the parallel triangle pattern in SPX suggests that bears and bulls are at a deadlock. there are no winners in the past 3 weeks...only consolidation. weak volume is also a signal of this. i call it the calm before the storm. the market can break out and move up from here or fall hard and continue its descent. i think the market suggests more the latter. TNX has been a great leading indicator and it suggests that we are very much in a downtrend and will fail this retest of the trendline and head back lower from here. The best traders will wait for a confirmation breakout of the triangle before investing. I, on the other hand, am invested moderately heavy to the downside.
Simon Louie
Chief Market Technician
Titans of Wall Street Equity Management, LLC
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