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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (48752)	11/19/2012 12:57:26 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70084

For now all the indices remain in an intermediate down trend. No way of knowing if we get a 3 to 4 day counter rally based on trading on Friday due to options expiration. While Monday will give us a bit of a glimpses of the mood of traders in the first hour or so of trading due to the usual lack of news it will not be definitive as the market is essentially reacting to the potential fiscal cliff for the next few weeks. As a result there is no incentive to go long at this time as it will take a few weeks to find a bottom on the indices. SP500 still in intermediate down trend with no bottom in sight. Next major support level just below this level so I would expect the index to test that level before doing an kind of sustained counter rally. The rally will fail on the first attempt. Index is not below the 200 SMA so an chance of a quick change in sentiment to the long side is gone. Same comment on the DOW. DOW transport test and broke the lower end of the trading channel today intraday. The only positive thing is it close above the lower support line of the channel. A break would set a new lower low and would indicate a new ranging is being established. A new lower low would also confirm the down trends in the other indices. COMPQ testing the second major support line on the index. The first support line broke with very little resistance which is very concerning. Financials one of the few indices that have been able to string together consecutive up days. It may not matter as option expiration is distorting the trading. Energy also strong together 2 up days in a row. Gold still rolling over and looks to continue a potential new down trend. Russelll 2000 small cap index potentially bouncing at a support level. I would not read to much into this right now. The trend is your friend and the trend is down on all the indices. You don't want to run out of money before a bottom is reach if you are look at the look side. Natural gas making a new attempt to set a new high. There is not enough volume to suggest conviction.