I like stock charts. I have studied many of them over the years, and consulted with the best chartologist. Today's big rally, following last week's meltdown, has retraced about two-thirds of the markets losses in the last week. But it has also produced a scary, bizarro chart. Today's gap-up now leaves a huge gap between the 1130 and 1145 level, which I have marked below with some white lines. Let's call it a "Euro freak-out" gap.  It is my experience with dramatic moves like this that these gaps are almost always filled again.This ugly chart is among several reasons why I'm not confident in today's "comeback rally."
This entry was posted on Tuesday, May 11, 2010 at 01:30 am and is filed under Macro.
Keywords: ECB, Euro Bailout 2010, S&P Chart, technical analysis