Monday, November 2, 2009

Sharp Rally Brewing




The market's decline appears to be losing momentum to the downside. We are now looming at some nice looking DOJI candles on the SPY and NASDAQ. The nasdaq is also appearing to be setting up a falling wedge on the 30 min charts further indicating a rally could be brewing. Today also, i noticed that there many "easy" short setups. Most of the time, whenever i see 'easy' short setups, that has usually led to a reversal higher. The market rarely offers freebies for too long.

5 comments:

Shawn said...

Thanks Stewie.

But what would negate your rally outlook? Any single minute breach below yesterday low?

Thanks
Sean

Stewie said...

hi shawn,

Well i was almost convinced we'd see a rally today. The warren buffet and Black and decker merger should haven been the catalyst!! But instead he are looking at another down day! This is a very troubling sign for the bulls. Market goes down on very bullish news flow, just like i exlpained in my recent previous posts, we are looking at a correction that is deeper and longer than previous ones we saw since the march rally started. plain and simple...longs are in trouble.

Shawn said...

So at end of day, Stewie do you still think Sharp rally or Bulls in trouble? thanks.

Sean

Market Monk said...

Rally still could come, FOMC announcement coming Wednesday could be the spark. It's usually sideways action till then.

MM

Stewie said...

i am going to agree with market monk here and say that after today's action, the selling appears to have exhausted and the rally call is back on. so important to be nimble and open minded in this market.

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