Wednesday, March 17, 2010

Caught Up in Euphoria

This is a market that is caught in its' own euphoria. The bulls will not let go, the bears keep trying, and the support and resistance lines merge.

We've seen this repeatedly for over 3 weeks as this market has held itself in a corner.
Smart day traders that already owned inventory were able to fight for tight profits, but all the rest of us sat on the sidelines and gave us the opportunity to buy.

It is now likely that the market will hold up the rest of this week, and start a downside early next week, but again any trigger news will create a bias.

We saw the reaction to the FOMC yesterday in a surprising manner; usually we are used to whipsaw both before the FOMC babbles, and yet again after.

Most of the morning we saw just a slight whipsaw. By 2:17 p..m. we had only seen the market move a TOTAL of 60 points. That's a market that is RIPE for something to happen, whether it be the topping at Fib bands at 10.746, or a burst of optimism that brings us up higher.

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