Monday, October 12, 2009

Things that make you say hmm...

I am going to go counter to everyone and say we will have a significant pullback. The problem is that we made a very marginal new high today. I expected this, but many are thinking this opens the door to a new highs in the 112 area. It does, but I don't think thats where its going and there is time to figure it out. Ignore the (ii) as it is a remnant...The question is did P2 end today or are we in a complex correction with P2 ending in the near future around 112?

Btw...did you see the Bear flag form at the end of the day? Volume was not declining during the formation so that is a little worrisome if you are short.
So close...
Yet another that is so close...But with the bullishness today the ma's actually got further apart.
Ok...back to the reason why I think we will not immediately head to new highs. We closed right on the VIX support.

Now the essence of the problem is that we either bounce off the VIX support hard...or we pierce it and head to the lower BB.