Bears back in Control

Yesterday's potential bullish reversal candle was not validated since today's trading was below yesterday's high. We closed at new lows at a level pointed out as potential support several days ago.

If the mid 1033-1037 level does not hold, we could pull back into 1012-1020. However, if the mid 1030 level holds, then we could push as high as the descending trendline shown in the chart.

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October 29, 2009

The SPX put in a bullish reversal candle today. It was the markets best up move since July 23rd. I see the market will push up to the 1071 - 1080 area. I'll posted my SPX chart above this blog. My daily video is posted at: http://www.youtube.com/watch?v=H_sQDEWlx8k

The stocks I like with further upside are: EWZ, ICE, HAL, and FCX.

Take a look at the UUP which tracks the US dollar. Move the settings to weekly and throw in an 8 week exponential moving average and you will see this is stone wall resistance for the UUP.

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S&P500

Market overview

The market has been crushed in the last 7 days. As the dollar strengthens, the market collapses. I use UUP to chart the dollar. I see minor resistance for UUP at 22.74 and major resistance at 22.92.

Minor support for the S&P 500 (SPX) is at 1039.47. Major support is at 1019.95 and 1013.14. I prefer 1013.14 because it is a 38% (fibonacci) pullback of the move up starting on 07/08/2009 and ending on 10/21/09.

Starting November 1, 2009, I will be on the air doing pre-market shows, trading hours shows, and nightly shows. Go to my website to get the password to my interactive audio/video trading chat room.

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