Friday, October 17, 2008

7:24AM PDST TWO BREAKAWAY GAPS DOWN TO THE LOW THEN A BOUNCE, AND NOW A RETEST OF THE LOW


Before this sell off the Euro was moving up
briskly and the dollar was slipping. Gold did not
follow the Euro, though it can lag a bit, or even
sell a little lower and then go up. It didn't do either.
Then the Euro started selling off and gold dumped.
Bonds are down again in the 113s. Oil is up from
its lows but doesn't seem to be a factor right now.
Stocks are up a bit after a gap down opening and
gapped up from the low then gapped down again
forming and "island top" which is a very ominous
chart pattern that resolves down quite precipitously
Stocks look like they are in for a very large drop.