Wednesday, January 20, 2010

Another whipsaw or is this for real...

After wiping out all of yesterday's gains, the market has once again found the bulls and is pushing this market back up. Will be to new market highs (again) or will we get a confirmed break below 1130?

Only the market knows, but I can tell you I'll be piling on tomorrow as soon as I see the trend has moved down (simple ma crossover on a short-term chart) with a stop above the high, whatever that is. The next break should be significant and start the ball rolling towards 1000.

If we go to new highs, then the market is subdividing higher. I'll figure out that count if we get there. For now, here are the VIX and ATR charts I'm watching that are definitely giving us sell signals.

Key resistance tomorrow: 1139/1141 and 1144/1146
Key support tomorrow: 1130/1132 and then 1113
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