Wednesday, December 17, 2008

Taking A Breather

The market bumped its head on the 915 resistance we have been talking about and finished a bit lower but still above the pivotal 900 area on the SPX. I would continue to be bullish into Thurs and Friday but if this market loses the 885 level I would become a short seller during the day. Above 918-919 I think we have a quick ramp up to the mid 930s. Friday is options ex and also quadruple witching so it will likely be a turbulent day but remember that moves can be exaggerated on these days so be warned.

The Euro ripped higher on the day to get over 1.44 at one point. I would be surprised to see this currency break much higher than this. There is some pretty tough resistance between here and 1.47. Same goes for gold. It was up all day until it pulled back sharply. So I would think gold needs a pullback here back to the low 800s perhaps even. Oil got clobbered again as I have been saying it would. OPEC cut output big time and crude actually dipped below 40 for a time. Respect that price action. It is telling you that it wants the mid 30s.

Otherwise it was just a slow grind out day in the equity markets. Almost formed an inside day but not quite. Initial claims could get this market moving in the morning. Follow the charts.

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