I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Monday, May 23, 2011

Market resembles May 2010

Today the market resumed its decline just as I feared in my last post. The question now is where will it end? The market action so far from last week's low bears an uncanny resemblance to the market action in May 2010 - especially in the week following the low formed on 7 May 2010. If the similarity continues, we can expect two things. The bad news (for the bulls) is that we can expect lower prices - maybe substantially lower. The good news is that if we follow May 2010, then a significant low could come at the end of this week. If we do get a low, we should also get a reversal pattern. If I see one, I will let you know.
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