Irish Luck Push Markets Higher, Stall At Major Fib Level

March 17th, 2009

Pretty good day here for the bullz – I guess they had some lucky gold we all didn’t know about. They seemed to push higher all day after a lower open. As I advised member’s I closed out my SPY puts with a good profit soon after the markets started rallying this morning – and thankfully so. I’m still predicting a fairly good correction coming soon considering how overbought we are – but today is not the day to start shorting just yet considering the strength. Whether it happens tomorrow or later this week, I can assure you that major bottoms are not put in place in less than a week.

 

dow2

 

From the DOW chart above you can see that we have pushed up right underneath a major Fib retracement level (circled in Blue). If you take a look back in time you can see that we have been pretty obedient to the retracements and I feel like this is no exception. We have rallied right up to resistance on relatively weak daily volume. On another note, Oil has done fairly well recently but it too has rallied up to resistance. Notice a pattern?

 

I think you regulars know how I feel about buying into resistance areas. I’ll do a New Trading Video later tonight after another Coaching Session.

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