The Yellow Caution Light is On
Tuesday, May 12, 2009 | William Kurtz Is this Spam?Rating:
The Major Indexes fell off hard today soon after opening, and proceeded downhill until about 1 o’clock when prices turned up and executed what appear to be three-wave “a-b-c” upside corrective moves, as seen in the 10-minute charts. Prices nevertheless closed lower on the day, except for the Dow Industrials, which were helped along by Microsoft and by ExxonMobil. The evidence continues to accumulate that the Indexes have peaked.
We will be alert tomorrow to see whether today’s intraday highs are exceeded. If they are not, and if prices close below today’s lows, then it seems increasingly likely that the rally which began on March 10 would be history and that lower prices are on the way.
William Kurtz May 12, 2009
