Tuesday, December 23, 2008

Nice break down...but tomorrow is probably up...before down...

We have come off the highs in what look like double tops and are comfortably in the bear channel. Today we bounced off the 38.2% fib for the retrace. Unfortunately we formed a small descending wedge today, which means more than likely we will get some rise tomorrow. I would look at the neighborhood of 88.16 as a good short entry. Either SDS or FEB puts or later. I still think we will test the bottom trend line by the grey bar I have marked.