Tuesday, March 31, 2009

What a mess...

Kinda tough tonight...The red bullish falling wedge had an upside breakout and then a retest at the end of the day. There is a possibility that the retest is successful and it makes another run for an intermediate high. There is also the possibility that it gaps below and forms a head and shoulders pattern. At which point we have to see how it goes.

The vix:spx ratio above is interesting as the macd is getting ready cross going up. This could very well point to a multi-day pull back.


Schweizer said...

The daily charts rolling over suggest there will not be a simple bump and go at 750, which actually does not really offer as much support as people want to think.

The bulls trapped above will be dumping today imo too.

H/S measures to sub 741, so 666 will then be the bigger magnet.

Pokerden said...

Haven't seen you around :)
Yes, I was thinking the big gap down on Monday trapped alot of bulls in, while yesterday gave them hope. The news events lately have made the market a tad more volatile :-P The falling wedge bothers me a bit, but if we can gap into the body there is hope.