Tuesday, April 21, 2009

H and S's oh my...or the B correction :)

Head and shoulders pattern forming with a target of about 78.75. We should start heading to the neckline soon.

It looks like the VIX:SPX ended right at the upper trendline of the wedge...which before was resistance and now is support. MACD finally looks like it crossed. Nothing to do now except wait for the 79 area and re-evaluate. Market could take off...but I don't see it as likely as we are getting hints that the banks are having issues despite all the bravado of paying back TARP. We find out today that TARP has only 110Billion left out of the 700 Billion. CRE is still falling apart though you wouldn't know it by looking at SRS. Chrysler has 9 more days to figure out what its going to do or risk BK...GM in the same boat but with more days...