Yesterday on day 3 of another sharp rally, my partner Cory Venable observed that short-covering might push the S&P to near term resistance in the 1925 area (mid dotted line below). Today, that seems to be holding (so far at least). We should remember that short, violent rallies that fail and fall to lower lows, are actually a hallmark of bear, not bull, markets.
Today he added the following long term candlestick study of the Canadian TSX 60 ETF (XIU) since 2006 and points out that it too is exhibiting the lower highs and lower lows action consistent with bear markets. Take care of your capital.
Cory’s Chart Corner
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