Tuesday, July 6, 2010

What the bulls need !!

(or should I say what I need for my longs lol).

Close needs to be above 1033SPX today or we will have some quite severe consequences for building a bull case here for the short/mid term.

EDIT: will be posting lots of charts in the coming days, many bullish but also some really juicy bearish patterns.

4:01PM: We did close green but not a victory day today and feeling quite uneasy about being exposed on the long side. Today can be justified as a great trapping day for both sides of the trade. Overnight action with a new low on ES, bull gap up with big retrace, bear fake with the gap and run higher and the tease on breaking the 61% intraday retrace by a marginal new low just to rally slightly into the close leaving bulls and bears without any real trade to put on for a swing. 50+ point intraday range is not what a "healthy" market should be doing but on the other hand its the much needed quest for finding the right balance of buyers and sellers. Remember bull markets do not need the volume, bears do need volume to confirm lower prices. At the end, I am a bit shaken again and not quite sure of what the market wants to do.

No comments:

Post a Comment