Talk about a weak rally today and an overall victory of sorts for the
bearz. Granted the news coming out of America's largest companies about job cuts was pretty bad but come on
bullz. I thought they might have more left in them. Today we formed was would look like a very clean shooting star pattern on the S&P and can very close to my target resistance level from this morning. However, the problem is that the pattern didn't come at the end of an uptrend, which is how they appear in Trader Heaven. Still, the fact that we formed a long upper shadow is telling us that the market is rejecting higher levels with added selling pressure. And, I don't mention this much, but the
MACD and
Stochastics have started to clearly signal an oversold reversal.
Commodities are forming the same type of set up as the overall indexes with today's candle pattern. The CRX below is also right under it's Fib retracement level that is acting as resistance for now. Still, I remain fairly bullish on Oil. Dollar weakness should also help as our FOREX trades did VERY well today.
My strategy remains the same; slowly move down stops on Shorts and start accumulating Longs for the next move upward. Let's face it everyone, we are in a funky mode right now with the markets. Nobody is really making money yet. But, you have to stay focused! Don't let these little daily moves disrupt your overall game plan. Penitence is extremely valuable in this market!
