Tuesday, August 11, 2009

The market tipped its hand, a little...

Although overnight futures appeared to have some buying, all that was gone at the open and the market made a new low with some significant volume. At this point it is safe to throw out my bullish scenario from yesterday. That leaves us with both bear scenarios with a normally bullish fed announcement tomorrow.

Essentially from here, my bear targets are on the table. How we get there is still unclear, so I'm leaving the price pattern as either an a-b-c with a=c (when including the 24hr data) or a 1-2, 1-2. Either scenario gives some room for some upside tomorrow, but both should see a continuation of selling the rest of the week and possibly starting as soon as the Fed announcement.


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