Everything looked good for a rally yesterday except for the 5th candle reversal that I failed to notice. This does not mean that the market is on a downtrend but rather it is now going back down to test support before any sustainable rally can happen as we move into the most bullish month of April. Today, the S&P 500 will be testing support at around 750 and 730. If either of these 2 supports hold, we will be moving up to 800.
Direction for 03/17/2009 Tuesday: down and then up
Crude Oil (USO)
Crude is still in a consolidation phase. I’m favoring a break up after a day or two of consolidation.
Quickpost this image to Myspace, Digg, Facebook, and others!As you see, the moving averages are converging. Every time this happens, the underlying will go through a period of sideways movement.
Direction for 03/17/2009 Tuesday: Sideways
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