Tuesday, April 28, 2009

Sideways Swine

Well nothing really changed on Tuesday as the market did its sideways thing. We have been going mostly sideways between 840-870 for much of the last two weeks. Ranges are tightening on all timeframes and this will result in a break in one direction eventually. There is a trendline that is rising from the last few weeks and it stands near the 840 area now. So if that breaks then you should see some more pressure on the SPX.

For Wednesday, the pivot point is at 852 and price is rallying above that tonight so I would assume to be more bullishly tilted on Wednesday as long as that pivot is held as support. I definitely want to wait till I see a break of 875 before I get really bullish. But I think that is what the market is setting up for. Might take some time but I think it is having an awfully hard time going down when so many people (mostly bears) think it should. When a market doesn't want to go down then it's telling you something.

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