Bottoming process or another primary leg

Nothing has really changed, so I’ll keep this short. We are still in this downward channel, which can either be 1) part of a bottoming process or 2) another primary leg down. If you don’t know what a primary leg is, then you can read an old article I’ve written on my 3rd tier blog. The lower Bollinger band and flagging action suggests that we still have more downside from this point, despite the fact that we are oversold. I wouldn’t commit all capital to shorting, but rather wait for the major reversal day (whenever it comes) and commit to a full-scale long position on a major spike on massive volume.

As for the employment situation, the consensus is a -648K M/M change, with a range of -800K to -500K. The previous reading was -598K. The unemployment rate is projected to be 7.9%, with a range of 7.8% to 8.1%. The previous reading was 7.6%. I’ve stressed this before, but the monthly employment situation report is the most important economic report. Let’s see what happens!

On another note, 50,000 NYCers protest the budget cut. Next up, riots.