redback report, week ended 8/10/10, page-10

Hi redbacka, thanks for your weekly updates and daily blogs - i enjoy. Looks those divergences are finally taking its toll. Unlike the US maybe liquidity is drying up?
The old pros used to say "watch for the sign posts for direction...... you know those really big white or black candles. They should come with arrows on them. On the top for the white ones and the bottom for the black ones. The little candles in between are just the stepping stones along the path".
Will be interesting to see which way the market goes from here but once the divergences pop up everywhere and the market puts up a signpost it takes a mighty lot of convincing to turn around and go back the other way.
Wait and see.