Thursday, February 19, 2009

A Look at the Indices and Some Indicators

Just a few charts to look at highlighting the main reasons I am uncomfortable shorting here. The odds say we should get a little relief bounce soon and with options expiration tomorrow along with the guiding hand of your friendly government authorities always present, you just never know. That being said, if we don't bounce soon, I suspect we may be looking at a mini-crash like we saw in October, where oversold conditions really just don't matter. I am assuming we get one or the other - I don't think we'll just drift slowly lower here. If I was already short, maybe I would let a few run here, but as it is, I just have to wait for a bounce to get short and maybe try to play a bounce. Good luck tomorrow.

Nasdaq
S&P 500
Financials
T2106 (McClellan Oscillator) and T2108
VIX
All Charts from Telechart 2007, Courtesy of Worden Brothers, Inc.

2 comments:

Anonymous said...

Mac you better get your zen ready shorting this market, you miss the 1400 to 750, then 940 to 759 what happen? it's not that you didn't see it coming. I'd say just concentrate on playing emini for now that help your focus. At least for now.

Anonymous said...

Bullish divergences in many of the charts depicted hesitated your shorting action. Well, this time downside breakout from the triangle may prompt you to short the market.