As I skimmed through charts this weekend, something became very evident to me, there are a lot of stocks very close to strong support and there are a lot of stocks with bullish engulfing formations. Therefore, I think we will see a slow down in the current down move, and likely a nice up move this week. Obviously I don’t think every day will be up, but barring any unforeseen news, it looks like we could see a positive week.
Now there is economic news every day prior to the open, so that will be the key to how I trade the day. I will be watching for the initial reaction and looking to see if there is follow through. I have been noticing that the jobs numbers have slowly been worsening, and even some housing numbers are stalling. So the fear could easily ramp right back up again, but I would imagine that would occur closer to the end of the week, with the Thursday claims and then on Friday with the income numbers. I speak in the video a little about the start of a disconnect between the euro and our mkt., so I will be continuing to see if they come back into line, or stay disconnected. It is always nice to have another indicator to watch. On to this week’s video:
