Thursday, October 14, 2010

Tomorrow we grade the test

Well the bulls had a perfect setup and couldn't hold it. The bears took price down to the key area of support: 34 SMA and rising trendline. A nice bounce, so far, has come off that area. Google announced great news after the close. Simply put, the news is upbeat, the charts need a strong up move, so if it doesn't come tomorrow, then sellers will pile in and take the ship down. When a market doesn't move the way you would think, it is because it is getting ready to move violently in the opposite direction. Tomorrow is options expiration, so it will be interesting to watch what the market players do. There have been plenty of times in the past where they have sold the market hard. Which will it be tomorrow?
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