BKX is not participating nearly as much as the major indexes have been in this rally, and with-out financials this rally is not sustainable, nor healthy long-term.
Fresh from the desk of EWIThe Next Major Disaster Developing for Bond HoldersElliott wave analysis can warn you of trend changes when the rest of the investment public least expects a market reversal. With that in mind, we have created a new report for our free Club EWI members: "The Next Major Disaster Developing for Bond Holders." Read more.Tuesday, November 9, 2010Tuesday, After the close!!!!BKX is not participating nearly as much as the major indexes have been in this rally, and with-out financials this rally is not sustainable, nor healthy long-term.The SPX had a down day that was printing lower highs and lows for the entire trading session and at one point dropped below the support of the median channel line, then closed right on it. There is a good chance that we had a failed 5th of some sort, but is still too early to know how serious this sell-off could end up being because we could be working on another 4th wave, bullish longer-term, or the small possibility that we are starting into an impulsive wave down, bearish longer-term. The lower channel line is still solid support that has been respected multiple times, but a break below it would open the doors for a much larger sell-off that would start with a challenge of the previous low at 1183.56.
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