Wednesday, November 5, 2008

TODAY'S ACTION

Well, I was in majority cash yesterday so I didn't feel the bite. I'm ready to go long again once we hit the 20-day SMA. Any break from that level, then it's 100% short for me. We gapped down today, but it was only -100 pts on the Dow, initially, and the fact that we weren't able to fill the gap in the first 30 mins was a big warning sign. I asked my coaching students to stay in cash this morning and for good reason - the market appeared weak and needed a rest. That doesn't sound too technical, but that's how it was and you can call it whatever you like.

The major break came at around 982-983 on the SPX. After that, we formed a bearish continuation flag for 4 hours until we once again broke down. The people holding here are the ones that only "hope", but it doesn't make sense to "hope" when you're in a bearish continuation pattern, does it? Then, the market sold off rapidly in the last hour of trading. No one should be surprised about that - we were already in a downtrend since the beginning of the day.


Tomorrow, pay attention to all the short-term 20-day SMA support levels. It may be an opportunity to buy up, or in case of failure, to short like crazy. We have a slew of economic reports, so keep your eyes on those.


SPX 1-day

SPX 3-day

SPX 10-day

SPX 6-month

Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!

5 comments:

MAX2205 said...

LOL. Much better!

Anonymous said...

I see S&P will be retest low and maybe down and stay at 614 to 756

Anonymous said...

I also see S&P will be down tomorrow to about 902.

Anonymous said...

ur analysis are all after the fact.... nothing is done in forecasting. u chart things out that have already happened. you just copy your ideas from thelion.com

John C. Lee said...

1) haven't been on thelion.com in months
2) I suspect you are from thelion...that's too bad

and........

3) Look up the definition of TA