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Sunday, August 29, 2010

Winodw dressing?

On July 20th we had an intra day reversal that ended on 9th Aug. Bottoms are generally not made on intra day reversal.
Before July 20th 2010  IntraD reversal was in May 2009.
IMO while everything looked peachy on Fri. but we should have more down side. Window dressing for end of month was/is underway.  This is probably the only chance the floor is going to get to

establish some heavy shorts for the next to worst month for stocks.  Many are expecting spx to turn back at 1070 it is just for that reason I think we won't make it there. My third chart is an hourly chart of the SPX and I have drawn the controlling resistance line in maroon.  IMO SPX is ready to be turned back right here.   The confirmation is in the TNA/TZA charts.TZA has risen from 28.78 to 41.67.  The 50% correction on that is at 35.2  2 I can't categorically say thats where the bounce will be from  but that is not a bad a place to come back to and go up from.  On my chart I have some very good trend lines that should be adhered to particularly TAZ.  The TNA chart is on the expanded line from Andew's fork and should act as resistance.  All in all I am bearish but would let DMRM guide my next move which should be a big down.

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