I believe this market is setting up for a gap down on Tuesday morning. I don't see the market bouncing up much from here, the support at S&P 1075 was broken and the market has been churning under that level for the past few hours. Beyond Tuesday, it's a toss up, we could rebound or drop further. But I think we need to do some more work on the downside this week before we can rebound.
From my studies of historical charts, a reversal like we saw today shows you the increased level of volatility at these prices. The higher volatility is showing that the market is rejecting these higher price levels for the current time. This market needs to consolidate more before making its next move.
Monday, October 26, 2009
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1 comment:
I'm still long EDZ from 5.81 and I got long STSA at .725 today dawg. My next play might be to .. nah I never telecast what I'm gonna do before I do it because I don't want people front running on my trade.
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