Wednesday, February 18, 2009

We Return You To Our Regularly Scheduled Bear Market

After gapping down hard on Tuesday the markets did very little in the way of move through the day. It was actually a very boring day if you ask me. The range was no more than about 15 SPX points during trading hours. However, the important thing to know is that we broke the 800 level and hit a low of 786.75, closing just above that. We are now right back to late November and struggling to hold those lows. The SPX still has a good 50 pts of downside before it reaches that 740 low. Anything can happen of course and I do think we will test the levels soon but I'm not so convinced we break below them.

As for Wednesday, the pivot point is at 791.75. We are actually trading jut above that after hours and I think we could see a small bounce in the morning session if price stays above the pivot. Heck we can even retrace into the 810 area if the market feels like it. For the day I will be bullish intraday above that pivot. However, below that pivot and its a whole notha' story. There is very little support beneath that 790 area and if we were to fall then I think we could see 767-770 quickly. Trade safe.

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