Thursday, April 7, 2011

1 down 2 to go

SPX opened lower made a LH and LL and closed lower.  That is a negative for tomorrow.  SPX made  its HOD little after 7 and LOD in 45 minutes or so.  Rest of the it was bouncing between the 25% and 50% mark never really catching any steam.  It closed near the 50% point.    Range was good 12 ponts.  RUT acted similarly except its closing in the negative was the first after 7 plus days in a row.  That is also negative.
This is SPX hourly.  Looking at this chart I believe we are in the process of making a reverse Head & Shoulder pattern to coincide with the coming 3.  Once the formation is complete in this pull back to 1304 or so if that we should see resumption of a spectacular rally.  Blue channel is indicative of things to come.  But right now we are in a decline and if something dramatic happens and changes the whole structure..Well..  I will keep an eye. 
This is TNA daily.  It got stopped at the median line.   From the start of this rally at 68.77 it has made
1 down 3 up; 1 down 3up; 1 down and 7 up days as its path giving 3 down days and 13 up days.  That  is very good rally.  The pull back to maturity will be shallow and probably not go lower than 86.  Since this is a shake down it has to be fast and quick giving people the impression of a total failures so more shorts pile on and faint-hearted jump out.
I plan to jump with both  feet in.
I am bullish but expect this pull back to be violent.  Thanks for reading my blog

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