The commercials are doing it again. You may have noticed that there is a pretty regular ramp in the Pre-Market, then the market goes quiet during the day. At 3:00 or 3:30 the selling begins, with a huge red volume spike into the close. This is a distribution pattern that has continued for over a month, with a few exceptions. Through this method, stocks are being distributed to weak (retail) hands.
The Pre-Market shows a 6-7 point spike higher this morning, challenging the Lip of the Cup with Handle formation near 1614.00. Chances are good that the spike may stop there, but it could progress back to the declining hourly mid-Cycle resistance at 1618.28. In either event, I expect to see the decline resume today, possibly with some catalyst to break the 1560.33 low.
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