Well I have similar thoughts but try to ignore my "thoughts". The chart looks like a chart that tends to rebound so am going with that. But as a safety the "Price is King" theory will keep me from buying into a potential waterfall. These waterfalls have occurred now and again in most markets. EX: Late 2008 and again in May 2010 and May 2011 and ......geez, It's May 2012 now isn't it,lol..................That is the only concern though while a huge one. But notice the big stretch away from the 20ema and 50ema that gets tagged on a regular basis. While price will bounce back to them one must also keep in mind they are falling or should I say plunging fast as well getting lower and lower quicker. But adding everything up with the indicators as well being very overbought and postive divergences being seen odds favour a bounce back up regardless. In fact a lot of markets look like this and their elastic bands are stretched to the max right now. "PERHAPS the invisible hand will come out of nowhere once again to save the day, and it will be "HAPPY DAYS ARE HERE AGAIN" time. You know with a Presidential election just a few months away things just are not going to get too ugly or the sitting politicians will get tossed from office and the big boys wont have the inside track on markets anymore. Can't have that can we.............
I suspect some great news is about to be announced very soon......................or the waterfall effect and kiss it all good bye. (not good buy) One or the other should typically occur here. Definitely don't want to be on the wrong side of it when "IT" occurs.