April 22, 2009 – It was totally fascinating, today, to watch a real-life battle between bulls and bears unfold in real time, right before our eyes. The trading was fast and furious, leading to a crescendo between 10:50 and 11 o’clock this morning. That ten-minute period was capped by a Candlestick bearish “Shooting Star” pattern, and within 20 minutes the downhill slide began in earnest.
We were as sure as we could be that it was coming. Prices had already exceeded the 78.6% retracement of the previous decline. That’s one of the “Fibonacci” retracement levels which have the propensity to stop corrective movements in their tracks. Had prices risen much higher, our analysis would have been in trouble.
As it was, however, the “Fib” retracement level did its work; the bearish readings of our Indicators were confirmed; the Shooting Star proved its mettle once again; and prices fell. They might fool us by turning around and rising about today’s high and even the previous high; but we think the odds are that prices will now set in for a substantial decline.
William Kurtz http://www.candelaabra.com
