Wednesday, January 21, 2009

Buying Today Was Much Weaker Than Yesterday's Selling

After going through my scans, I still didn't find a ton of interesting setups on either side of the market. I had some short setups yesterday but now some of those are questionable. This lack of setups, and the fact that we are still neutral indicator-wise, might cause me to not do a whole lot tomorrow. Once I get more setups showing up, I'll try to get another video done. Right now, there doesn't seem to be much reason to do so. I may just play some ETFs if the market rallies again up to the areas I mentioned earlier.

Based on my scans, the selling strength in terms of breakdowns yesterday was much higher (1580 breakdowns of more than 4%) than the buying strength was today (only 953 breakouts of more than 4%). That has been pretty typical of the one or two day pops we have had during this bear market, so that confirms my feelings a bit that today was nothing more than a typical short-covering pop.

Here are the indices with the areas I am watching pointed out. We may rally more tomorrow but I am watching for a reversal at some point soon. Just hope I can catch it. Take care and good luck Thursday.

S&P 500
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

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