Thursday, June 4, 2009

Turbulance Ahead

Looking thru many charts tonight, much to my surprise, i believe that we are probably going to enter a correction here for stocks. This correction can come in two forms: A: a selloff that takes us several percentage points down or B: a few weeks of sideways action to slightly down. Either way, i think that the upside for many stocks looks capped for now. I am starting to see many stocks that appear to be printing topping patterns of some sort. This most recent pop and rally we saw in the markets set up many negative divergences on many key stocks. This is a warning sign to me, to not trust any more upside from here.

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