Wednesday, November 11, 2009

11/11 - SPX and Dow: Shooting Star?



I am not going to bother with a count again. There are several options out there and frankly all seem plausible.

Just going to work with my trendlines and adhoc TA. Perhaps we are seeing a shooting star on both the SPX and DOW. I say the SPX has a more pronounced star vs the DOW.

The DOW touched the new top trendline (blue) before pulling back and closing lower. Let's see if this becomes a new resistance level (for now).

The SPX has a little more to go before touching it's new upper trendline (blue). Notice if a touch of the upper trendline were to occur sometime tomorrow, it will mark the 1120 level. This is the 50% retracement level of the bear move from Oct 2007.

Let's see if we get confirmation of the shooting star tomorrow. A gap down will do it. The question is, what will cause the gap?

1 comment:

  1. As for what would cause a gap down today, possibly waking up to see the Asian and European markets both down, maybe just recognition that everything is not as sunny as they seem. (Actually the European markets are back up a little right now, but who pays attention to facts anymore.)

    If you are a conspiracy theorist, maybe someone is trying to ensure a good opportunity for the sell of treasuries...