Saturday, February 25, 2012

Liquidity Pattern: no imminent Top ...yet

When looking at the Liquidity Pattern we can observe that Bottoms seem to follow a 1-2 Pattern (Price Low first followed by a Liq. Index Low) whereby Tops see more protracted Patterns or better Zones that take time to pass through.

Looking at the current picture we have to wonder whether we are just entering a Topping Zone, meaning that the process could take some more time like 4-12 weeks or longer. This would mean Mr. Market could surprise on the upside and suck in more short covering in like seen in the Euro or in the Prec. Metals.

Liquidity Index Institutional Money
Liquidity Index Tech Large Cap 

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