Thursday, November 4, 2010

11/04/10 Update

Wow, what a move today. While spectacular, volume was not huge. It did however show that P2 has not ended and there may or may not be more of that to come. For the SPX we need to get to 1228.7 for the 62% retrace, we are currently at 1221.06. Note that we are close enough that a turn down tomorrow could end P2, or we could even go to 1381.5 for the 78.6% retrace. A turn down now is dangerous in that it looks like a double top, whats more odds are high for a reversal.
VIX bounced off lower BB, so now you expect it to move to the 20MA.
BPSPX:CPC up considerably but still below a recent high even with todays spectacular move. Need to have it under the 20ma for a few days before we confirm a reversal in the market.
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