Friday, December 14, 2012
The market is following this blue fork. But this support has become very important as it is also on the handle of a larger downward fork. A very sharp decline may be brewing. As I mentioned on Friday December 7 1396 is crucial. It may be that the recent advance from mid November lows was only a correction within the lower half of the downward fork I showed on Tuesday December 11.
This is a difficult call to make because we are at the junction of two opposing forks. Keep both drawn on your charts and watch for clues.
My thanks to David Christoph for pointing out this dip below the Kumo. Keep an eye out for a Tenkan Sen cross over. Keep in mind that both the Tenkan Sen and Kijun Sen are both below the Kumo. This is a bearish indication. If the Price should fall below the Kijun Sen the indications will become even more bearish.
The relative AD vs Price has also been negative since the first time we dipped below the top of the Kumo. This definitely looks like a weak market.
I'd also like to thank my new friend Nathan for all of his observations. It really feels good to have some participation!
Posted by Robert Campbell at 07:03