MERVAL BUENOS AIRES(1123) Near term trend: Negative In the last review I said "the "flip side" is that we are still trading well below the important trigger of "1216". In the near short term expect a weakening of the prices if Index failed to close above 1150 or the important 1216".

In synchronization with the global markets, Merval had also seen a corrective rally since Oct 2008, netting over 48% gains. However the index is missed our threshold of 1216 by a whisker. Remember that I had mentioned '1216' as a very crucial level way back on 21st Oct 2008. Now after 13 weeks (Fibonacci number) the index is possibly failed to surpass this point & that too with a difference of less than 1 point. This could lead to clear failure of the bulls (read downtrend) in the next few days/weeks, even a retest of Oct low is not ruled out. Stop few points above 1216.