I mentioned on March 30th I that it would be difficult to imagine that Q2 would duplicate the bullish advance of Q2 without a pullback, since these indices had closed at major resistance levels. The Q2 candle retraced either all or much of Q2's candle on all four major indices and closed in the upper one-third portion of its candle.
If the Q3 candle retests the Q1 lows again, I'd be very skeptical of much of a convicing advance above this year's high during these three months...instead, that would signal to me that these markets would likely chop around in that candle's range until a breakout occurs one way or another...that is, barring any sort of catastrophic news which could send the markets much lower.
Looks like the bear awoke from his winter hibernation and was very hungry, just like he was the prior two years...the question this year is whether he'll hang around for Q3...time will tell as to what tantalizing tidbits may come his way to hold his interest. Stay tuned for Q3 results at the end of September...
So, already, the first layer of the bull's chocolate cake has been plundered by the bears, so there's no chance of them enjoying this cake for a 2012 Christmas tea party...instead, we'll have to wait for "Santa's 2012 Surprise" for either the bulls or the bears to enjoy. Stay tuned for Q4 results at the end of December...
