Monday, July 12, 2010

Ye Gads! This Could Be Godzilla!

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The SP-500 is taking bullets, grenades, barbed wire, heck, I even saw the kitchen sink on the side of the road.  This thing is like Godzilla!  It is going to keep standing until the sellers run out of ammo or it can't take it any more from pure exhaustion.
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My vote is the latter.  We already have our trend line break and negative divergence, then even a second negative divergence thrown in for good measure.  This is what gold did a week or so ago before it dropped $50 in the blink of an eye.  This is also what the SP-500 did on a much bigger scale just before we had the 'mini-crash'.
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On the other hand, if the TSI just continues to softly drift down to the ZERO line it actually could then pretend it is doing an Air Force fly by, and just start going up again.
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And maybe it will.
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Click on the chart to ENLARGE

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