Today's move was quite impressive if you were short. However, we have seen similar moves in the past only for the markets to turn around on a dime. Perhaps, the long awaited "correction" is upon us. Since March 09 we have not had a correction of 10% or more. Is this time different? I do not know. Time and price will reveal if this is meaningful.
I do believe that we may have something on our hands though. We have broken through the bottom trendline of the wedge forming from July as well as the bottom line of the "broadening top" forming since August. This line has held every sell off since August except for th ebreak in November which was stalled by the bottom of the wedge.
Looking for around 1104 tomorrow on the SPX before a retrace. my guess about 1035. Anything above then this sell off is probably short lived. Lets see.
Thursday, January 21, 2010
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