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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (85071)	1/16/2009 6:41:49 AM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 94695

I will tell you why I think this rally could run higher and longer than most rallies in this bear market... First of all, I also question the length and strength of this current move... the reason I even suggest that this could be a bigger move is because of yesterdays price action... my indicators and models all were telling me that 808.50 was the end of the sell off for this immediate down cycle, 808.56 to be exact was the market's reaction point... since the SP futures only move in .10 ticks, it could only be 808.50 or 808.60, but in either case the market never even got down there... in most cases, I don't see prices ever reach these reaction points, and yesterday was no exception... Now, since the market broke this past September, prices have been reaching and going beyond these reaction points... yesterday was now the exception to the last few months, this indicates more strength than normal considering the price action of the last few months... I could be completely wrong and we could see new lows within a few days, and I would not be surprised, and if so I'll be short once again... but, because the reaction point was not touched before this rally began means that this rally has some inner strength and could carry this move higher and longer than most people anticipate... as a rule, after prices touch or get close to these reaction points (give or take a few ticks), there is a highly spirited rally... and, of course, visa versa with an overhead reaction point after an extended rally we see high volume selling... this means there is now a reaction point above the market, and if we get close to it, I will be selling with both hands... GZ