Monday, October 25, 2010

Yes Dorothy we are about to leave Kansas and 1200 behind.

 SPX gapped up at the open today.  It made a HH and HL which by itself is a positive for the mkts tomorrow.  The range from hi to low was less than 12 points and spx closed barely 1 point from the low of the day.  It closed in the positive.  RUT made a HH and LL and  had a 10.5 point range and closed a little less than  4 points from the bottom. It too closed in the positive.  This was all from G20 meeting during the weekend. 
I went short in the market today using TNA.  Because..
Tomorrow is Gann 180 from April 26th and I expect the markets to start a pull back if it hasn't already started.  They don't come that often Its every ninety days last time was July 27th. and RUT topped out at 672 and started a decline that took us to 588 on 8/24.  To me its an important date and if there is a rally I will short some more may be not immediately but within a day or two as soon as I get other confirmation. 
The chart on the left is SPX weekly it hit that sweet spot on the black line I have been waiting for.  This is a more important resistance line than the red and green because it is drawn from the immediate higher point on the left.  IMO this is would be much stronger resistance to over come.  That was reason 2 
and finally the RUT is exactly on the median line that should be a resistance.  That median line (within a few points of it) proved to be an excellent support for RUT on its  rally up from March 09 low and now it should be resistance.  That was reason 3.  And the odds are favorable for Tuesdays to be  opposite of Mondays. I am bearish and am short.  I will make modification if signals warrant.

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