Saturday, March 20, 2010

Weekend Update

After looking over the charts from Option Expiration Friday, the market didn't give us any clear direction. Was the Friday high an important top? Well, without better downside price action it could just as easily be another correction on its march to higher highs.

So, I've put out two different counts:

The bull count should see another strong week and higher highs. We should easily close above the weekly high. Monday's can often set the tone for the week, so another strong up close on Monday would be the first clear sign.

The bear count should see a nice daily reversal bar on Monday. Possible strength in the morning to be wiped out with additional selling. If the market can get above 1160 and stay there during the morning the bears are in trouble. We should see a daily close below Friday's low and a weekly low at least to 1126. If we spend much time below 1126 this week, then things could fall apart fast.
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