Is a Short-Term Counter-Trend About to Develop in the Markets?

Technical analyst Abigail Doolittle of Peak Theories thinks so. She writes:

- In looking at the charts across multiple asset classes, it appears there could be a near-term shift to safety from risk.


- Specifically, the major equity indices each look poised to drop between 2% and 7% in the coming weeks while certain commodities – copper, corn, crude, and soybeans – also look set to fall.

- Gold and silver, and somewhere between risk and safety, could go either way but there are technical aspects supporting a near-term rise before an intermediate-term decline.

- The dollar index also seems ready to move up from current levels due to a possible Falling Wedge pattern while the EURUSD’s technical aspects suggest a move down to the 200 DMA of about $1.32.

- Lastly, U.S. Treasurys show the potential to rally in the near-term and such a possible move would be strong confirmation of a short-term shift to safety.

Keep in mind that Doolittle is discussing a short-term correction here. It won't be anything more than that, as long as Bernanke continues to print money. These corrections take place from time to time, just know they don't mean anything in the long-term scheme of things. Keep your eyes on Bennie.