One thing that made me think the bears were totally finished was the explosive move crude oil made early on Friday. However, the rally completely fizzled, and by day’s end oil was in the red and sporting a rather impressive gravestone pattern.
All eyes this weekend will be on the G20, and we’re bound to get some big reactions in currencies. I still contend the USD/JPY looks very toppy, and a substantial drop in this currency pair would help the equity bearish case (which, let’s face it, needs all the help it can get).
Going back to precious metals, the gold/silver index has an even cleaner trendline than the gold bugs. Beautiful!
And, lastly, the Dow Composite makes an interesting point, which is that in spite of the sickening rally we just had to endure, the big picture not only remains down, but forcefully so. Just look how the relatively tepid downtrend (from my patent-pending Ichthus pattern) was followed by a much steeper downtrend. Let’s hope it resumes.
In closing, you have my solemn, solemn pledge not to ever again publish one of those bear-market-stopping videos. My ridiculous impulse to publish one of them stopped the market cold on August 24th, and then again on February 11th. Believe me, I’m sorry, and it won’t happen again.