Tuesday, December 2, 2008
I'll Follow You Down
It's been a busy day on my end and I probably will be limited in my trading/posting till tomorrow but I wanted to throw out an update. Market pulled back nicely yesterday to a perfect 50% retracement of last weeks move. Today we bounced all the way up to the 846 level. We are rolling over the last two hours as the auto makers release their terrible November sales numbers. Shouldn't this be baked into the cake? Anyway the 15min chart looks bearish but we could see a bounce back to the 830s in the last hour where I would probably be a seller rather than a buyer. If the markets lose the 818-820 support area we are going to 800 and if we lose that level then I would expect to see 770 by weeks end. We are still within a larger range falling wedge and simply ran up too fast last week and bumped our heads on the celing. We should see a continued pullback to test the 800 level at the least. I will try to post by tomorrow.