This Will Dictate The Next Move
We wish we had a lot more to say…but nothing, literally nothing has changed
since our last report. In fact, we don’t have to change a word of it. Let’s
review and then pick apart the market a little more
The resistance levels we outlined for you still stand. Yesterday, the DOW
actually broke out on an intraday basis but reversed to the downside.
Normally, we would tell you that another reversal to the downside was
negative…but we are just not seeing enough damage to worry us. The positive
side of the reversal was that the A/D actually got better as the “market”
worsened, an amazing occurrence to us. Since you already have resistance
levels and since the range is so tight, here are the important support levels
to watch. DOW 10,400…S&P 1191…NASDAQ 2052…SOX 425. A break below these
levels will make the correction a little more of a correction…but still
believe things will remain controlled and rotational based on how many stocks
are in good technical shape.
Of note:
OILS have put in another “V” shaped move. These stocks are continue to
trade very wide and loose and tough to play.
BONDS continue to be under some pressure. Last time, we told you BONDS had a
high volume reversal to the downside. Nothing has changed.
Sentiment is turning too bullish…which is potentially bearish. Put/call
figures are quite low and bearish advisors have now hit a low not seen since
January.
Let me be clear here. The next big volume day will dictate the next move.
The tightening range dictates that. Just keep in mind, the tape remains very
split and you must be in the right place. We are far past the point where you
can throw a dart at anything and make money.Â
Gary Kaltbaum