Monday, May 23, 2011

Market comments for May 23rd

This morning the market broke again below the recent uptrend line as is shown in the chart below. I had said in my post yesterday that we shall see if you should "Sell in May" and it is clearly showing that others think so.

In the chart above I have drawn 2 lines numbered "1" and "2" to show that we have gone lower and broken the previous support line "1" this morning. In the chart below you can see how the pattern is very different than the March 16th chart pattern shown in the previous post.

You can see we have broken below the previous low of May 17th in this drop this morning. The market is now in a downtrend.

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