At least for now, that is! But how much longer will that last?
(to watch on youtube: http://www.youtube.com/watch?v=eR3R8utzsVw)
While I can't tell you that the market is going to crash tomorrow, I'll just lay out some possible scenario's. Friday's and Monday's seem too be the day's that most large sell offs happen. Panic and fear set in, as the thought of holding long over the weekend scares a lot of traders into selling on Friday.
Of course Monday's are common big down days because the prior Friday was usually a shaky close, from a week of "indecision" in the market. This leaves us with another "unknown" for tomorrow. Will the market open flat, gap up or down? Let's explore what each one means and the possible outcomes.
A gap up over the recent high of 1339 would surely be bullish and I'd expect 1344 to be taken out, leaving a race for the FP on the SPY of 138.86 (about 1388 spx). But a weak gap up below 1339 would make me suspect that it is a final exhaustion gap, leaving the strong possibility that it will fail once again to take out 1339 and would likely sell off hard into the last halve of the day taking out the Thursday low of 1326.
A flat open would likely result in an early morning grind slowly toward the apex of the triangle the market created today. At some point it would have too breakout to the upside or downside. My guess is that would breakdown because of it being a Friday and I just can't see traders getting all excited enough to stage a big breakout on the long side with all the worry about the new earthquake in Japan. Who want's to hold long over a weekend with that kind of uncertainty? But maybe it does break up out of the triangle anyway, as it's not traders buying this market but the Skynet computer (which doesn't have emotions).
A gap down would be the most bearish I believe. While it should try to fill the gap (or some of it) during the open, it would be a great place to get short in my opinion. The likelihood of the market continuing to sell off the rest of the day would be very good. My downside first target would then be the 50dma around 1312 spx.
So, there are your 3 possible scenario's for Friday. Which one will it be? I wish I knew the answer, but I don't. However, most of the possibilities are bearish for Friday... which should be some good news for us bears. Let's not forget that Monday is 4-11-11, which is the date the Ben Fulford thinks the Illuminati gangsters will cause Mount Fujiyama Volcano to erupt and sink Japan. Let's hope that the recent payoff money of $60 Trillion Yen from Japan to the Federal Reverse Nazi Gangster Elite Illuminati members is enough to get them to turn off the HAARP beam pointed at the volcano right now.
Here's the latest update from Ben about that...