Friday, December 12, 2008

Update Going into the Close

Almost reached the earlier 890 target, made it to 883, but markets are having trouble breaking higher here. Looks like a bear flag (green) forming in the short run. If that breaks lower, the target would be about 815ish depending upon if/where it breaks.

Notice on the chart that it is following the bottom of the bear wedge (light blue up slopping line). We are also still following the inverted H&S neckline.

The bullish case is that we made a higher low and we remain in the blue line channel, which itself COULD still be a bullish wedge. Overall still looks like a battle. I give the bears the edge in the short run, but the bulls may win in the intermediate term. Long term, definitely still bearish.

Both the daily and weekly candlesticks right now look like spinning tops, this shows indecision.

Remember, it’s bank failure Friday… bad news can come out of the blue, thus if you are long, my advice is to be careful. Same goes for being short, it’s a dangerous market in both directions. Cash is always good in times of uncertainty.