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Thursday, February 3, 2011

Ultimatum to th markets?

 SPX made a HH and LL and closed in the positive.  That is another intra day reversal.  That is positive for the markets.   
Last FRi. was an intra day reversal to the down side followed by an inside day to the upside followed by huge up day follwed by another inside day to the down side.
If the opposite of the pattern were to continue we would see inside down day and a huge down day on Monday.  After making a quick and nice size low at 7.15 (about 9 points lower from yesterday's close)  SPX took off and never looked back. RUT did the same.  They both closed very near the highs of the day.  Very positive day for the markets indeed.
This is SPX hourly.  Just waiting for the paint to dry.  I looked at some previous high since 666 low and found 930; 1037 ; 1143; 1220 ; 1129 ; 1227 all to be highs.  The last two are after July low at 1011.  I was surprised SPX likes to top around 20 or 30 points over century.  Now there is a calculation out there of 666*2 = 1332 for a top.  It will have to be one massive distribution for two days for that to happen.  Time to watch a little closely.  If SPX does not turn around here ( low probability at this point ) I will be bullish rest of the way unless I see a 2.25% or about 30 points pull back then may be very may be I will look for a decline.  Honestly I do not want to be chasing the top by 5 and 10 points all the way to who knows where.  
This is TNA hourly that caught my eye.  Today's decline was exactly on the 77 DOMA and and at precisely  12.5% decline point.  TNA has not broken its channel of ascend.  It barely touched the lower line and took off.  Its moves are very exaggerated for it is 3x er. None the less it is looking very bullish and another assault on the top line very likely.  And that is around 87.  Now where have we seen that 87?  
The markets are very stubborn and do not want to come down.  It is time in my books either the decline starts now or I am forgetting it.
I bearish for 1 more day or couple thats about it.
Thanks for reading my blog.

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