Tuesday, February 24, 2009

Rally Time?

Well it looks like the market has bounced off double bottom support at 741 and after todays rally it should get some continuation higher. I do think this will prove to be an oversold rally within a downtrend but those can be fast and furious so get your seatbelts on. Of course we are not even back to where we were on Friday's highs so we still have plenty of work to do before the charts look great. But for at least one day I think we have a shot of a nice short covering.

Specifically, Wednesday's pivot point is at 763. We are s bit above that after hours and I think we will probably stay above that mark. Pullbacks to the pivot should find support Wednesday and I think we can see upside into the 782 level as a first target. Above that and 795 could be seen. If we happen to to somehow lose the pivot and volume increases to the downside then you will want to think about going short more than likely.

No comments: