INDEX UPDATE
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Am sticking to my previous position that the top will arrive around THUR of next week, if it hasnt already done so. After Thur, the market should head down further.
Right now my short-term technicals are smack in the middle and pointing down. As stated many times, whenever the technicals get in the mid-range, the market can go either way.
The fact that all the support lines above 8317 and below 8750 were broken with ease, is not a good sign.
Granted that the DOW rebounded 200 points intraday, but that does not change the mathematical calculations of the technicals - they are still pointing down.
We could still get an upswing early next week, but by THUR such will be over.
The next resistance lines are at 8585, 8700, 8750, 8850, 9041. For the time being, unless something changes, I believe that 8750 will be the highest the market will go to before reversing again, and quite possible that 8585 or 8700 could also hold.
There is, of course, the chance that we could continue down right from here.
Lets just say that on a technical basis, Fridays performance was still more negative than positive, even in light of the 200 point rebound.
PUTS should be initiated this week, and best befor THUR.
Seeya |
