Wednesday, April 14, 2010

I Think You Have To Get Ready For A Turn

I'm just saying, you know how stupid this sounds, like the market could actually turn. LMAO. With that thought in mind I present the following. 

CPC is getting near the extremes that brought the last big sell off. It is not there yet and we may need a little pop to get us there, but it is in the potential reversal zone. Last time it was down here we got a major move.
 Daily SPX - OK, price is above the daily BB. It is just under resistance. The red wedge is ending. The BB is pinching price into support. The BB may be vertical at this point. The BB width is very narrow indicating volatility. It has been overbought for an extended period.
 SPX weekly - I have been bringing you this chart with targets since October. I have cautioned that this rally will be over when the RSI crosses that red support line. With RSI finally over 80 one would think that would be enough. I will be truly amazed if it crosses the green target zone which contains the 200ma at 1224, the gap, the 61.8% retracement at 1230 and C=A at 1214. In my opinion this last push that got the market thru the bear market upper trendline is the blow off top suckers rally.

I'm not saying go short the market. I'm saying this should be a major turning point if things were "normal". I will continue to play my SDS and SSO up and down on the 30m S Sto crosses on SPX. They can ramp this SOB to the moon for all I care, but if this technical intersection on the daily chart does not produce a reversal I'll be amazed (yes, even more than I already am). GL!