Over the weekend the blogosphere was incredibly bearish.  To top it off, when the futures market opened on Sunday evening and into Monday morning they were pointing to a huge gap down.  But, Alphahorn wrote on Sunday evening that this move in the futures was a “HEADFAKE” and that I expect the true direction for the markets to be up and that the next pullback was still a bit into our future.

Was it: A) a lucky call (AGAIN?!) or, B) was I being tipped off by one of my tried and true indicators?  If you answered B or both A and B, then you’re in the ballpark.  Look at this chart below and note the indicator on the very bottom.  When it builds divergence against price; it’s deadly, as it was again on Sunday and as it was the last time I timed the bottom to perfection.  More to come later after a continue my search for my Microsoft Office.