This Saturday, I wrote "One can expect prices to continue forming a top around the 200 day moving average before the next leg down." Yesterday, prices once again hit the 200 day and now the S&P opened down 30 points. This choppy trading is a topping formation. If this thesis is correct--and evidence is mounting--the 1290 area will be the next "lower high" in a bear market, and a break below 1070 is the next significant move.
Today's bias at 9:45 AM, is negative, suggesting sell the rallies intraday.
Wednesday, November 9, 2011
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You may be right. The 200 is proving tough, and this is a bear market. Those two things are certain.
ReplyDeleteBTW, as planned, I closed shorts and went long today.
I exit longs today.
ReplyDeleteAs my grandmama's sister's oldest grandnephew used to say, "When the market slaps you in the face, you better listen, boy."