Monday, December 8, 2008

Hit Me With Your Best Shot

Couldn't resist the Plaxico humor there, lol. So the morning gap up in the markets was never filled and thats a good sign of strength intraday. With the market tagging the high 910s late in the say we saw a selloff in the last hour that had us close right above the 900 area. It seems like the market will need a bit more push to get over that 920 level. But I hear that someone spotted a bunch of bears over 920 shaking in their shorts. So I do think we are headed higher to squeeze those guys much higher. However, we did just run up about 600 points in two days so whats wrong with pulling back a bit Tuesday? Not saying we won't go higher but the odds are a little higher to see a profit taking. Nothing wrong with that. I am still of the opinion this week that we will continue to melt up higher.

I would be a buyer of dips down to the 880s and could possibly see this thing getting to the 950s in the next few days barring any crazy news. The market is set up, that is easy to see if you know how to read the charts. The falling wedge that I have been talking about for a few weeks now has materialized but I believe Tuesday will be a pivotal day to confirm if the market wants to stay above the falling wedge that it broke out of on Monday. Like I said we need to see the 875-880 area hold and then rebound and then I would think we can get a leg higher. Watch those levels for Tuesday.

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