Thursday, September 25, 2008
TODAY'S ACTION
I was looking for the S&P 500 to make higher lows, and it did that right from the beginning. You can see how the day held up around 1,207, but one thing I didn't like is the sell-off at the very end. I typically want the day to end in strength in order for me to initiate long positions, and with the whole bailout proposal going...and going on for a while now, I opted to stay in all cash after making a cool overall 6% today.
Here is a 5-day chart and you can see where I expect resistance for tomorrow. If the S&P 500 penetrates 1,225 and if the subsequent pullback holds at that level, then I'm buying unless there's significant weakness.
You can see that the overall chart of the S&P 500 still looks horrible, but note that yesterday formed a doji and today confirmed a reversal. 1,180 is major support and 1,220 is major resistance for the short-term.
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