I still do not think that we are going much lower (I know we all have different opinions and that's what makes the market). 881 on ES was tested 4 times and the bears could not break it, so I think that we will see 960 soon. I would not be surprised if we see S&P in the 880-960 range for the next few months. If we close below 880, the next support is 800 and 760. If you look at the daily chart of SP, it has bounced everytime since breaking the 4 day low. We broke the 4 day low today so I'm expecting an up day tomorrow.
The chart shows what happened in the past after SP broke the 4 day low. The only difference now is that Nasdaq is weaker than it was in the past.
2 comments:
i like and respect your views but i still dont think we are going into a new bull market. this is i think a temporary rally within a larger bear market.
perfect example is just last year.. when people were saying everythings cheap and we are in a new bull market and then in the summer, not much happened and then we sold off in the fall. so my view is something similar will probably happen.
anyway i could be wrong.. but i am now probably little more convinced of your views.. so i may open a few positions in the next few days/weeks.
This could be a temporary rally within a larger bear market but I guess I have to follow my system. I have been bearish since August 2007 and just turned bullish in April 2009. So far it is working and will be buying dips. If I am wrong I have the stops to protect me from losing a lot.
Post a Comment