Monday, March 16, 2009
That was a typical 5ish day after so big gains in so short time its just natural to make a pause and shake out some people. Tomorrow we rather should trade lower initially. We had a 108 point rally and could easily give back 25% even 38% is possible. The later is 40 points down and means testing back the 740 level before resuming the upmove. We also are head for quadruple witching and many calls and puts outstanding need to be settled Friday which might make the market range bound for the rest of the week between 735 and 775. Beyond that we are heading for the big first window dressing and some market movers have a big interest to create a positive first quarter so expect the rest of the month heading for 825. The actual level even creates a monthly reversal opening the way for a multi week rise and that's exactly what they want to create after they have fabricated a vicious low at 666. I never have seen a low with an ISEE factor of 220 which means aggressive call buying ( usually lows are marked by fear).
Posted by getagrip at 3:01 PM