Thursday, July 9, 2009


Nice reversal at the end of the day. This was confirmed by a hammer on higher volume. The close also puts the head and shoulders formation on hold since the market was unable to close below the horizontal neckline. We are at regular oversold levels, so I do expect a sustained up day.

I will be busy today, but I will try to fit some trades into my schedule.

Here is the SPDR sector breakdown. Many are showing high vol reversal candles. XLB, XLE, and XLI are forming falling wedges, with upside targets as close to the upper boundary as possible. XLP is still forming a bear flag. XLU is in an ascending channel. XLY is range-bound but with a smaller descending channel within. XLF is forming a large descending pennant/descending triangle. XLK is forming a symmetrical triangle with a smaller descending channel within.

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