Wednesday, September 10, 2008

Financials Once Again at Key Technical Levels - Where Will They Go From Here?

Good evening traders. Just a few charts to look at tonight. No index charts but they are a mess. I think we could bounce a little still and I actually wouldn't mind that in terms of getting better entries into shorts, but as I mentioned earlier, the 1255 area on the S&P 500 and the 2285 area on the Nasdaq are where I would look to enter shorts on any bounce. We could just fall from here though as well. I think it will really depend on what the financials do from here - they are right at an uptrend line as well as their 50 day moving average - both key support levels. If they do break down, then I am guessing the market will start selling off once again in a severe manner, much like what we saw yesterday.


The commodity sectors are still stretched even with today's bounce, but I am really not interested in playing a bounce in these. I don't necessarily think the selling is over in all of these names. I would advise continued restraint in going long anything in this market, unless the indices stage a dramatic and powerful comeback out of nowhere.

Here are a few short setups that I will be watching tomorrow. I will also continue to watch some of the names I have posted the past few nights.

All Charts from Telechart 2007, Courtesy of Worden Brothers, Inc.

That's about it for tonight. It was not surprising that the market tried to move higher today, but the bounce died late and volume was weaker than Tuesday, which shows again that we are just not in a good market here. We may slosh around here for a few more days and even move higher, but the trend is definitely down, and it pays to play it accordingly. Good luck Thursday.

Tags: , , , , , , , ,

No comments: