Just a little more…

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dogs-bouncing

Wow... when I said I expected a bounce, I didn't think it would all happen in one day!  That was a pretty big move, but it happened on light volume.  Again, under 200 million shares traded (spy) equals an up market.  Looks like we might be on our way to about 107.30 to 107.65 (spy) before the selling continues.

So, I'm looking for a flat to up day for Friday.  Remember, Friday's and Monday's are usually very light volume days.  That means the markets should float higher.  Of course if we have some good volume the market could continue the downward move.  But, I think a few days of rest is good for Mr. Bear, before he starts attacking those Bulls again.

I'm thinking that Monday could be the high, before a drop resumes toward the major support at 104 again.  However, I believe it will fail this time, and the next level at 102 will be the next destination before another rally will occur.  Now, if 102 doesn't hold, then we are going to 99.80 - 100 in a big hurry.

We should definitely bounce there as that hasn't been hit in quite awhile.  I give it an 80% chance of a large bounce.  That means at least a 50% fib. level move back up.  (That's from the current high at 110.31).  So, just take the weekend off, and be ready to go short again on Monday, or Tuesday at the latest.

I almost most forgot... this is a holiday weekend.  The markets aren't closed, but many traders will go ahead and leave early for Halloween.  So, that's just one more reason for the market to have light volume Friday, and also Monday.  Which means... say it with me now!  Light volume equals an UP market.

OK, that wraps up tonight's post....

Red

9 COMMENTS

    • Thanks dinko…

      How did you find me… by the way? Do you read Cobra's site, Evil Speculator or Slope of Hope? Just curious, as the site is new and probably not listed high in the search engines.

      Red

    • Thanks SmartCoin…

      I missed the call today, but you can't get them all right. As for the levels… they are still in play and should provide a nice bounce when hit. I put more info up about next week by Sunday, when I do my Weekend Post.

      Red

    • Thanks for dropping by LuckyFish. I missed today's call for a flat day, but I still expect the levels to hold for support. I'm going to wait until the levels are hit before taking any position. I'll have more info on my Weekend Post.

      Red

  1. I can not remember when and where I get your blog, I watch Evil, I even leave some comments with charts, but never get feedback, and there is too much comments., so I quitted.FULCRUM was my nick at disqus.I dont go at slope. I like your blog with precise , plain and simple targets few days in advance.
    here is my chart what I expected few days ago, and today sitaution:

    http://img692.imageshack.us/img692/3313/mamusu.png

    http://tinypic.com/view.php?pic=2i6p26h&s=4

    greets from sunny Croatia, and keep good work!

  2. I can not remember when and where I get your blog, I watch Evil, I even leave some comments with charts, but never get feedback, and there is too much comments., so I quitted.FULCRUM was my nick at disqus.I dont go at slope. I like your blog with precise , plain and simple targets few days in advance.
    here is my chart what I expected few days ago, and today sitaution:

    http://img692.imageshack.us/img692/3313/mamusu.png

    http://tinypic.com/view.php?pic=2i6p26h&s=4

    greets from sunny Croatia, and keep good work!

Comments are closed.