Everybody is wondering what is coming next...? If you take a look at the SPX chart below...notice the four possible scenarios that the arrows in red are indicating....
Stochastics is nearing oversold, so if there is any further downside...The bears will need to work very hard to breach the 857 level. Market is still holding up because everybody is looking up to Obama...but there are some wicked bears out there trying to tell everybody to sell....
The only motif bears want us to sell...is so that they can buy stocks cheaper at the bottom....and make some easy money through their puts...
In conclusion.....they don't have the guts or money to breach above 950...that is a fact...!
Alrite, back to the technicals....I see the recent sell off as a pull back....Until the market starts moving again...which will be soon... My advice is to keep your powder dry and just follow the trend...
Just a sidenote JPM is reporting their earnings tomorrow, expect some weakest from financials But when you see lots of fear in the market that might be some tell tale signs for a possible rally until the Obama Inauguration. Beyond that, we have a few other major banks reporting their earnings....So careful there..
blog comments powered by Disqus