Tuesday, April 14, 2009
The SPX is heading for the 23.8% retracement at 880 and has technically broken above the channel resistance but the follow through was poor so far. I think the real follow through we will see in wave C up but before that we apparently need to get into wave B down. We are in the final part of wave A up and after the VIX 13 the ISEE is now signaling the top is in sight with readings above 200 ( that was the amazing number at the lows?!). I guess the other financials reporting this week might do the trick but we hare now on hot seats with longs as the market can turn down any moment by technical means we need at least on higher closing compared to Thursday for the SPX and NDX, the DOW requires 2 higher but that can be neglected. Only one of the driving forces the XBD at 10 needs 2 as well and might be good to watch with high alert.
Posted by getagrip at 11:18 AM