Thursday, December 18, 2008

Finally Friday

Well on Thursday the market failed to break thru resistance in the 910-911 region and then cratered back down into the 876 level before rebounding in the last hour to close in the high 880s. Holding the 876-880 support level will be important for this market going forward if it wants to continue rallying.

Point is that the market has basically been stuck in a range for the last two weeks between about 820 and 915. No serious sustainable move will be made until we can break thru either of these levels. I still am clinging to my upside bias into the last two weeks of the year. If the SPX breaks 876 to the downside I will be looking to the short side trades more than likely.

For Friday we have Dec options expiring and it is quadruple witching which is just Wall Street gibberish for four different types of options and futures expiring at the same time on the same day. So just expect turbulence and dont even trade the last hour on Friday.

I am expecting this market to have trouble getting over the mid 890s on the futures and if we fail this level we can definitely see 870 Friday. However, if we somehow get over 910 I will be going long and looking for 930 target. Trade safe.

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