- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
- This blog has a copy of all header posts that I publish anywhere, so that those interested in seeing what my thoughts are on the markets can find them easily.
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Sunday, 10 July 2011

Castaway

I'm having my cast removed at hospital on Monday morning and am graduating to a removable cast for my leg, which is healing much faster so far than I was expecting from my doctor's firm warning three weeks ago not to put any weight on it until tomorrow at the earliest. In practical terms I'm pretty certain I could walk on it now, though the ankle will need some careful physio I'm sure and I understand that the bone doesn't finish healing completely for about a year, so I will need to be cautious for a while yet.

I've ordered a blackthorn walking stick as I'm expecting to discard my crutches soon. These have an interesting history as they were adapted from the traditional Irish shillelagh after those were banned by the British occupiers a few centuries ago, and make an excellent weapon for home defence in countries where householders are allowed to defend themselves, which after some recent changes in the law here, now includes the UK.

Anyway, unless my hospital visit tomorrow is very fast, I'm not expecting to be back much before the open, so I have a couple of quick observations to make about equities here. I'm expecting some more retracement, though it's worth noting that SPX completed a 23.6% retracement from the June lows at the low on Friday and that it's possible this retracement is already complete. I'm expecting more downside though, and am expecting a low in the 1300 - 1326 range. There is a possible H&S forming with a target at 1304 and there's strong support at 1318 and 1300:
I think this retracement may last into Tuesday or Wednesday and I'm expecting new highs afterwards, so this is a dip worth buying in my view.

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