Idle speculation: A big bull flag forming over the next several days before breaking resistance to the upside wouldn't surprise me. Denies bears their correction and denies bulls the ability to get in at a good price.
Just like 09/19, today's close leaves us in perfect striking distance for a small gap up then early morning run higher to re-test the highs. It is only 16 S&P pts away, just like 09/19. Maybe history sometimes does repeat. If it does, early run to highs tomorrow morning is a short entry with stop above highest level (123.5) since mini-crash.
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GOOD jumped, pushed NQ to higher than yesterday's, but other indices didn't respond to the GOOD news. I think tomorrow we are going to have the C leg down first.
Mr. BachNut wrote:Idle speculation: A big bull flag forming over the next several days before breaking resistance to the upside wouldn't surprise me. Denies bears their correction and denies bulls the ability to get in at a good price.
That's typically what the market does on a new bullish leg in a bull market but not on a relief rally in a bear market. If it does consolidate and then grind higher, it'll be a great sign for bulls. If you look at extended relief rallies past, they have lots more volatility than new bullish legs in bull markets, so a few sharp moves downward over the next couple of weeks will be a good sign for bears, even if higher lows are formed. We'll just have to wait and see.
Last edited by spuderik on Thu Oct 13, 2011 4:12 pm, edited 1 time in total.
Mr. BachNut wrote:Idle speculation: A big bull flag forming over the next several days before breaking resistance to the upside wouldn't surprise me. Denies bears their correction and denies bulls the ability to get in at a good price.
That's typically what the market does on a new bullish leg in a bull market but not on a relief rally in a bear market. If it does consolidate and then grind higher, it'll be a great sign for bulls. If you look at extended relief rallies past, they have lots more volatility than new bullish legs in bull markets, so a few sharp moves downward over the next couple of weeks will be a good sign for bears, even if higher lows are formed. We'll just have to wait and see.