But after that, I think Friday will sell off some...
(to watch on youtube: http://www.youtube.com/watch?v=4RNpfHKGW4M)
It seems that most all of the short term charts have been reset from overbought to oversold over the last few days. Both the 60 and 30 minute charts still have a little room to go on the "downside", but with the extremely light volume I doubt that the actual price level will drop that much.
This means that we could see a little weakness in the morning, but I expect those 2 charts to roll back up fairly quickly and push the market up for a new high. Yes, I know that sucks for us bears... but that's what the charts say right now (and of course the charts "DO" still work for the bulls, just not the bears).
After Thursday... who knows? If the market gets overbought again on all the short term charts, the I'd expect Friday to sell off some. But calling a top seems almost impossible in this insanely manipulated market. It truly is totally NUTS! ...but how can you go long at these levels? I can't, and won't. You'll lose big time if you do so in options. The calls will be destroyed with the falling vix, even if the market goes up as you want it to. It's a "no win situation" no matter what you do!
So for now, let's just take it one day at a time. Tomorrow is looking very bullish too me, so I'm still looking for that blow off top to happen before I get short again. I've been burnt too many times right now, and my butt is sore. If we get that big move up early in the morning tomorrow, then it could sell off into the close... which at that point I'd be looking to get short again.
If it's strong all day then I'll have to wait until Friday to see if it looks ready to roll over. I know we are close to a top, but I can't pick it exactly... bummer 🙁 This could be one of those week's that puts in a final top followed by a bloody next week, as we never know what bad news they could release over the weekend? Remember, most crashes are on Friday's and Monday's... just food for thought.
Good luck everyone...
P.S. Don't forget about our 14.86 FP on the VIX, which should be hit if we get a blow off top tomorrow.