Thursday, June 2, 2011

Is Your Head Spinning Yet?

Very confusing and wild volatile action all around this week. This market is still looking for direction and gets knocked around like a rag doll. The downward channel that started 4 weeks ago is still intact and thus far, the indexes are bouncing around within this channel. We are oversold after yesterday's 300 points selloff on the Dow and another 100 points lower today. We are dead on support as i write this post.

It's do or die time for many indexes.

I think the indexes will hold these support levels for NOW. But the more price knocks on a support line, the more likely it is to break it. So stay NIMBLE and very light PLEASE!

I personally think the indexes will hold here(today) and could see a small bounce from here even.

However, I am in 100% cash and happy to keep it this way for now.

Trade carefully!!

Good luck!

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