Sunday, June 29, 2008

Financial Sector Update for 06.29.2008


Monthly chart shows increasing selling pressure during the month of June 2008. Is this capitulation? The move down from January 2008 has been made with regular divergence. While there is no buy signal/pattern evident on this timeframe, the regular divergence suggests that one be on the lookout for bottoming action, and for signs/signals of a change in trend.

Weekly chart shows price to be below all key moving averages, and also well below the down trendline in place. Possible 5 waves down. IF we have 5 waves down, THEN look for a 3 wave abc retracement pattern of the whole move down. No buy signal/pattern evident as of yet on this timeframe.

Daily chart shows the last leg down has been made with regular divergence, where price made lower lows, but the cci indicator did not. While there is no buy signal/pattern evident on this timeframe as of yet, it is a warning signal to watch for bottoming action and a potential change in trend.

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