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... gcocks83

Earl, Does that mean you are going to just roll with it.

... monicadern

Sounds about right. Futures are ramping and the European markets have been open for about an hour.

... Red Dragon Leo

Ok, thanks…

That's my target to bailout then. After that gap gets closed, I guess we can expect a run up the rest of the day with a final close above 110.35, which I wouldn't be surprised if they put in a new high.

... sundancer390

the gap will get filled after the market forces all those people who shorted into the rabbit hole to close their positions

yesterday at the close the $SPX went and kissed the 240MA on the 60, $SPX 1097 should hold on a 120 print so that's about equal to the SPY 109.95 area

... Red Dragon Leo

That looks like it needs to be filled, but as you said, if the go that low next week, they might not be able to get back above 1116 for the monthly close. So, that gap should go unfilled until we start the crash down in March.

For today, is unlikely to go below 109.95 as you stated?

... sundancer390

i was going to show you this chart the other day

with the gap up on tuesday they left a whole bunch of people on an island that was created with the gap down on 2/4/2010
http://www.flickr.com/photos/47091634@N04/43698

... sundancer390

market needs to hit it's 20 ema on the 30 min first which is @ 110.35, then next up will be the 20 ema on the 60 which is @ 109.95, algos will be jumping all over those two cycles

next week is all about the month end setup, so could they take it down to 107.82, yes, however the likely hood of closing over SPX 1115.10 then becomes very slim and terminates a potential multi-month reversal

oscillators always look stretched coming off a IT low, you'll always notice that after an IT low in a bull market it gives birth to a uni-directional move

the market will lead and i will follow

... Earl of

Gcocks,

My steps lately have not worked out well. Tempted to quit taking steps 🙂

... Red Dragon Leo

It looks like the 1092 spx area was the low over night, so that would seem like a likely spot to drop to in the morning before a run up in the afternoon. Am I reading that correctly?

Also, the print you saw on last Tuesday for 107.82, do you think that might be where they take it down to next Monday or Tuesday, before a final run up to 1127.38? It just seems like they need to work off some of the over bought conditions first, before going higher. Plus, that would give them some more bears to squeeze.

... gcocks83

GM Earl. I don't have any idea what to do today!