Thursday, June 17, 2010

Tomorrow or Monday we move down...

...all I can say is there must be a whole lot of open interest in puts that the market makers are doing all they can to make sure they expire worthless. So I'm not going to get too much into the minute charts. Unfortunately the sell signal we got yesterday never really got going although we did drop through yesterday's EOD sell off low.

But here is where we are:

- daily charts have now hit a level on the RSI(5) that sellers should be coming in
- we're at key resistance and losing momentum

Now, if we are in a minor wave 2 and not a minute wave 2 (flat), then we should move down but the 1090 area should hold. I don't think it will, but let's see what the market is going to do. Since it is options expiration tomorrow, I'm not holding my breath for a major move down. There's nothing in the price action to say we aren't going to try and poke our heads out above the week's high tomorrow, so I'll wait for price action to get me excited.

Best of luck!
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