Short Term update: Dull, Dull, Dull!

The fact that the market is narrow and dull and at the same time trading not so far from recent new highs for the rally from the april 2011 low gives me pause. We have broken well above the previous high of 4.15 but now no aggressive buying activity is evident. Experience shows that when the market gets dull after an extended move it is about to go into reverse. This leads me to believe that a break down to 6 or even further is imminent.

One thought on “Short Term update: Dull, Dull, Dull!

  1. Marco

    I completely agree Enky. I am flat, and am expecting a move to 5. It seems we are just drifting downward. There should be at least a small correction from here. When it happens, the bears will say the end is here, and the buyers will once again buy the dips – at that time, the rally will continue.

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