Schweizer

Weekly Preview: Last Week's Rally Should Be Viewed with as Much Suspicion as Relief

Good article. All that really happened last week was a panic short covering rally by those who went short at the H/S neckline break which reversed on the pop based on GS and INTC earnings releases. Once above the neckline many traders keep reshorting, only to have to cover a second or third time. It was like throwing a constant supply of twigs on the fire. I suspect that is overwith now with Friday's doji.

There are some major Moving averages as resistance on the weekly and monthly charts at the current prices so I'd like to think these will hold. The DOW also is at a downtrend resistance line.

One pro called last week a classic boiling at the top of a range, just before a major spillover. Seems to fit as I did not see any bulls piling in - just Bears as buyers, covering.