The market made a good rally throughout the day only to fail after the Dow had hit resistance at 7000. This resistance is not a technical but a psychological one and failing it means that the market as a whole is still not ready for a rally. Today, having failed 7000 on the Dow, the market is ready for a tank. Whether this tank has legs will depend on whether the Dow will break 6800 and S&P will break 710.
Direction for 03/12/2009 Tuesday: Down
Crude Oil (USO)
Crude rallied together with the market only to turn and fail the 50 day moving average. This failure to break the 50 day MA indicates that it may move down to take out its previous low at 22.7 on USO.
Quickpost this image to Myspace, Digg, Facebook, and others!Direction for 03/12/2009 Tuesday: Down
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