May 10, 2011


Back from vacation:)
We saw higher prices as I have been expecting, but I see many TA signals raising red flags. I think the indexes are in a process of forming intermediate top and correction of bigger degree is the next move.

I expect new marginal highs followed by correction of bigger degree.
The difference between scenario 1 and 2 is actually only the path to new highs.
The other option is the indexes to continue climbing higher. I think this is less probable, watching the weekly charts and the market breadth indicators I do not like it very much. But who knows:)

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