close not good, page-75

re: gann farsight exited my spi long xjo daily study
Conclusions: marked lack of buying pressure on the dmi with sellers still stronger than buyers and potential trend starting on down moves, bollinger not indicating direction but tightening as the consolidation progresses, sto indicating consolidation with potential move down typical of this sort of weak move off the lows, macd inconclusive, neutral, rsi bullish, no indicator oversold or overbought. Fib levels say that the market failed to retrace above 61.8 on one occasion and now seems capped by a 38.2% retrace level. Thats pretty bearish. Patterns: theres a nice highs to lows line from 27th April that has been support and resistance throughout this retracement. This will cap potential short gains medium term at around 4800. There's also the usual downtrend lines, all saying this is still a downtrend. Trading channel on the hourly with slight upward bias, makes a nice bear flag cept its a bit long in the tooth. On balance, its reads to me as a consolidation in a down trend. Theres not much sign of a reversal. I believe that in these bearish situations the onus is on the bulls to prove themselves. They really haven't. Bull volume is tailing off if anything. In my opinion, the darvas approach is also highly useful here... wait for a breakout on expanded volume so the market tells you what its going to do. Markets do after all spend most of their time in consolidations of one sort or another. If I was to put money on one bet on the outcome, I be bearish.