Wednesday, February 2, 2011

One huge Red candle?

 SPX made a LH and HL and closed in the negative.  It was an inside day.  As I have  learned from recent past on an Inside day the closing is more important than previous day therefore it is negative for tomorrow.  Dow SPX RUT none of them got any traction at all today.  There was Egypt enough to put a damper but ADP was positive that didn't move the market.  Unemployment and ISM come out tomorrow and Benny speaks.  There is room for action some big action.
This a daily chart of TNA.  My sense is it came down on (1) from 79.3 to 68.57.  Rallied to 75.9 as (a) down to 69.2 as (b) and up to 77 today finishing (c) and completing (2).  The channels and the gaps support that. Tomorrow if  TNA gets a follow thru and slides hard that would confirm a start of 3. When compared to last Jan. there is only 8 more days of decline left. 

This is SPX daily.  On a flat day like today there isn't much change in many of the charts.  It looks to me like SPX gave a GANN 4 hit on the 4x3 line.  This a daily chart and reversal when they happen would be substantial.  The market looks exhausted meaning the average gain per day on 10 day average is now lower than what it was in Dec.  and Dec. was a slow month.  Too many candles very few point gain in my book books meas  one huge red candle in the making.  
I am still bearish
Thanks for reading my blog.

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