I don't buy it -- I postulate this is a false move in a long term trend

[patoo]

Quote from FaderTraderr:

Just wondering why everyone keeps calling for sustained directional moves. Am I the only one who feels that the markets, with all the quick (leveraged) money moving in and out and average investors becoming increasingly short-term oriented, that the day of the sustained trend is over?

The sustained trend is not over for good, just for now. The monthly swing up from way back in Oct 2002 is still cooking.

 

[4re]

Quote from patoo:

The sustained trend is not over for good, just for now. The monthly swing up from way back in Oct 2002 is still cooking.

I was expecting a couple of up days since the markets have been taking a beating recently. I think everyone was just looking for an excuse to run it up. But I also believe it will continue down now. Here is an ES dialy chart that shows 3 bearish signs.

1. Yesterdays candle went right outside the upper Bollinger band and snapped

2. Yesterdays candle almost bounced off the 60 day EMA, could not make it there.

3. Nice inverted hammer candle

Any one of those would be bearish, but all three in one day.

4re