Monday, October 19, 2009

A Market Quite Unsure

Friday we saw a market quite unsure if it would hold above 10,000. We saw a market that hit a theoretical Dow top of 10,100, a resistance area, and a low of 9899. The count holds at 3 to the put, not quite a bias that defines "ready to trade," yet the market did not do well holding above 10,000 after one day.

After hitting stop loss on our put last Friday, fortunately on a dip that lowered our losses, and for some broke them even, I'm hesitant to recommend a put on a low count, and will provide dual signals based on signals.

We believe the market is at a top and will bottom test likely at 9550 to 9720.

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