Tuesday, May 4, 2010

Early bird catches FAS

The market (SPX)  and FAS opened lower and stayed lower all day. There was a huge gap at the start which was not filled.  FAS may have left stranded island.  FAS gapped up yesterday and gapped down today. Some believe it is an island only if you can see thru from right to left meaning the highest point today is lower than the lowest point from yesterday.  Gap ups and gap down happen a lot in FAS but it is still worth noting.  This is not positive.  FAS and SPX did not close at the low of the day and that is not positive.  
There is no buying force like a window dressing or options expiration or a great earnings.  The gravitational force is to the down side.  Astro also points to waning moon and not a positive aspect.
The daily Gann from Feb for SPX stopped at the 2x3 line that is mildly positive. The candle for today was large. It is highly probable that tomorrow would be a low range day with bias towards making lower lows. I have added a Fibonacci fans to BKX the banking index.  BKX  stopped at the 38.2 % fib fan.  That is positive.  I missed today's trading for I woke up very late.  The first thing I saw was FAS at 100.8 down 5 and I did not take a positions.  I waited all day for a DMRM rally.  I did not get one.  The signal to go long is at 99.1 and that is what I will be looking for.

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