Tuesday, March 23, 2010

The market is putting up the setup...

...but will it deliver?? We now are extended on the daily chart with the potential of a confirmed divergence sell signal. We have the ATR just sitting on the edge of a confirmed sell signal. We have the Nas sitting at the 786 retracement from the sell off, but will the market deliver? I wish I knew the answer to that question. This market has done nothing but reward the buy and hold and punish any bears who dare put show their face.

Based on this count I'm expecting more upside tomorrow morning.

Price action has been contained pretty much to the middle of the channel leading me in the direction of a triple zz instead of an impulsive 3.

So here we are. I'm looking for a move below 1163 to get short with a stop above the highs and an initial target at the 1090/1105 area.
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