Morning folks. futures are pretty much chilling here. No big changes which is not surprising as we dont have many real headliens this a.m. and the overseas markets were a mixed bag. OIL is slgiht sly up to mid 76.00 range…Nat Gas slightly down while gold is up ever so slightly.
we we have talked about previously we are pingponging between a major resistance and a major support zone. either a break of the top of the box or the bottom of the box will indicate our new trend. a break of spx 1150 is large because it violates teh longer term head n sholders pattern that many of the chart voodoo people follow (i am not one of those!) while a break below the box at 1120 tells us the whole sept rally was just an oversold bounce
right now its 50/50 which way we break. on the bulls side the dip has been bought everytime for a month. On the bear side we had a big oversold bounce and now are incurring some significant window dresssing my fund managers who want to add the hot stocks at the end of the quarter at any price just to show their customers in the prospectus that this quarter they were in the hot stocks.
regardless…we have to be prepared for 2 things. one is to load up on the break of 1150 and have some fun..find some breakouts/mixed with bottom stocks that will need to run up also.
or on breakdown……we need to dump everything and wait for a major support level to hold to rebuy.