Looks like we got the rally that was spoken about in the free chatroom yesterday. Guess I should have went long but again I didn't like the fact that the rally started in the last hour before the close. I would have liked it better if the market would have closed near the lows and then surprised everyone with this rally. It would have also had more strength I believe as a gap up tricks many and triggers buy stops on the shorts.
The rally starting before the close alerted the bears that it was coming so I suspect many closed out their shorts, which then limits the distance this bounce can really go. I seriously doubt if it can get past the prior highs in the 2940's, as this is now the 6th attempt back up. Something has to give here soon I think as if the bulls can't breakthrough this support zone on this attempt I have to believe that the next move down is going to be a large one... the kind that takes out the 8/5 low.
I'm not sure if it's going to start tomorrow or Friday but we are very close to a big drop starting. I'd certainly feel more comfortable if there was another fast pierce through that 2940 zone to hit some stops on the bears before starting this down move but SkyNet makes it very tricky and hard to see ahead of time. There's a "possible" FP of 300.84 (about 3000 ES/SPX) that worries me. Anyway, for today (and tomorrow) I'll be looking for a big short to setup at the close. When I take it I'll of course post it in the chatroom. Have a great day.
