INDEX UPDATE
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The technical underpinnings for the overall market is still very weak and untill they (ADVANCE/DECLINE, NEW HIGH/LO, UP/DOWN VOLUME, ETC) become stronger, it would be prudent to be careful on any long positions.
There are reversal signals across the board to the upside, and the market popped up strongly from today's lows.
Now the question is that will the market continue up. Untill the technicals become stronger for upside movement or interest rates increase for downside movement, I feel that we will be trading in a fairly tight range of 8750-9100(max 9200).
As a guess feel that over the next 2 days, the rebound which started today should be weak and we could even retest today's lows before moving up more steadily; therefore feel we could have a TECHNICAL DELAYED DIP. As for tomorrow am seeing signs that we could open up then dip intraday 50-100 points off the intraday morning highs, to close down or flat. Such movement could also continue into next week.
This will be WHIPSAW TIME so take caution with all postions. Overall, the short/mid-term trend (1-15 days) could lack any real direction with frequent/medium size oscillations, unless the technicals strengthen or interest rates increase.
In light of the weaknes in the technical underpinnings and a quick 47% profit on my calls, I sold them near the close.
I still own my PUT spread in the OEX since I still feel that the overall market will continue to be weak thru expiration.
Seeya
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