I'm feeling very tired as I write this, but take note of a couple scenarios for market open this morning.
Overall Sentiment: Bearish.
Look for the market to continue down in early morning trading.
Heavy volume should provide even greater confidence that the market will move down. If it does move down... Look for support at $102.55. That would be down 1.05% from Friday's close. Could reach as low as $102.09 to $101.88.
If the market heads upwards, expect a struggle to gain any momentum up to the $104.50 price point. If we get that high and SPY can break $104.60, we have the chance to have some upward momentum... Watch also for a gap up tomorrow morning... If we Gap up above $104.60, look to buy. If we Gap up, but below that $104.60 point, consider shorting to fill the gap.
Assuming we move up tomorrow morning, beyond the $104.60 price, look for resistance at the 100 or 200 day moving average, which is currently at the $105.19 and $105.34 marks respectively. If we break those levels... look to possibly recover most of Friday's losses.
The upside potential aside, I want to to reiterate my bearish stance at the moment.
Thats all I have for now... I must get some sleep, I hope that I will have time to post again before market open.
Monday, November 2, 2009
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