Looking at the DOW you can see that I have draw some pretty strong resistance and support levels that form a declining pennant formation. Ideally, I would like to see a close over 9,000 and over its 50-day moving average before I get ride the bullz up. My short term thought is that the bearish engulfing pattern from Monday is now tested (i.e. the mid-point retracement), and we should see at some sort of selling pressure soon.
I made note to members that I shorted the USD/CHF again. Again, the bearish engulfing pattern and shooting stars are great indicators of the bearz taking charge here. Based on it's past history of moving back to its 50-day moving average, I'll be looking to take profits around 1.17 where the 28% Fib retracement level is at as well.
BHI is a good looking long play if we get continued weakness during the end of the week. A quick run to $35 should be no problem short term for this stock.
FCX is another good long opportunity. It sold off hard today but look at the volume and the hammer formation. A retracement back to at least $30 (where the Fib level is sitting at) should be more than likely when the markets rally.
