The FAS opened at low of the day at 23.33 and immediately rallied to reached the top of the day at 24.28 at 7.33 early in the morning. Specially after a 3 day holiday the expectation was for the markets to open higher. Market started its drift lower at 10.30 and accelerated after 12.15 and FAS closed a dime higher than the low of the day at 22.60 and SPX closed at 1070.71 and 0.81 cents higher than the low of the day. At the very open I did not short FAS even though the temptation was to do so. I shorted at around 7.40 and sat with it all day and covered around 12.40. FAS broke down quite fast after that. The point is not to short some thing because it is down that always goes against me. Second is there was an illusion that it might be a positive DKOD on FAS until about 12.30 but even if it was I wasn't going to buy FAS till the end of day anyways. I had done a study before on spx closing at or near low of the day( within 0.5 ponts) where I found 100% probability that we would be up next day. Today is not within the 0.5 points but the way everything else closed I am going to call an up day tomorrow. 2nd day of the week (usually Tuesday) and 1st day of the week (usually Monday) are opposites that is a positive. We made a LH and LL which is not a positive.
The chart is that of SPX daily. I have marked the cycle days. Seems like we are running a 12 day cycle of sorts. We have completed 311 days from March 6th 2009 low and have also done 79 days since Feb 5th 2010 low. Any thing after 80 days it is time to look out for a low. June 6th is an important Gann date since it is a Sunday I would infer Friday may be a good day to make a good low. I am mildly bullish primarily because the floor had to take in inventory at the end of day. I will be watching to go long when I get a chance.