Looking at the charts of most U.S indexes over the last 2 weeks or so, it is clear that things are definitely volatile. The stock market have been bouncing up and down and having trouble breaking past previous ceiling. The markets are trading in a range right now.
Also note that it seems to be in a range, moving sideways, and the charts haven’t finished the 1,2,3 downward pattern yet, which is down, up and then down again. So far we have the big drop from July 21st to August 10th, and now trading between 10,800 and 11,500, it could be in this range for a while before the big drop.
For the Nasdaq it is similar. Eventually, the full downtrend will present itself…I am guessing Nasdaq to settle around 2000-2100 and the DJIA to settle to around 9600 to 10,000 and it might take weeks to get there, who knows.
I am currently fully invested in HQD.TO which is the Horizon Nasdaq bear ETF. Again, as I have said before, I do not think there is anything positive in terms of economic news, or world events that can prop this stock market up. It would bottom then Ben Bernake will do QE3 which will print more U.S dollars and only after he does that will the stock market turn upwards, but don’t know how long this will last.
by Das Brain
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