Day Trading – The Bullz And Bearz

FED Says US Markets Still Not Stable – Huh, You Think!

May 21st, 2009

Did anyone honestly believe that stocks could continue up week after week. Come on, let’s start getting real here. Again, the charts have been screaming this for weeks to come. Hopefully the correction will be just as significant as the rally up. Futures are still low as of this writing but we have some critical levels to go through if we want to keep this trend bearz. Below is an intra-day look at the S&P for May. The level in GREEN at 880 is one that we really need to break sooner than later. Don’t be surprised if it acts as some short term support before a break lower.

 

 

Looking at the daily charts, you can see that we are moving very slowly away from the underneath of the black trend line. Naturally, the area between 820 and 850 where the next major Fib level is located would be a great area for this market to bounce from. Thus, as we start getting down there, we all should be slowly adding LONG – yes I said it – to our portfolio. But, again, not just yet you ultra-bullz out there – WAIT a week or so.

 

 

OIH is looking offley toppy! Notice the beautiful retracement of the major support/resistance line. An eventual fall back down to at least $90 seems like a no-brainer at this point.

 

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