We are still going up baby! – Market Analysis for 12/03/2010 by Singaporeseeds

The uptrend since March 2009 just refuses to correct. This may mean that we are still going to continue going up OR we are at a major turning point where everything starts to turn funky (volatile) before it turns ugly. Last night after market close, futures just gapped and tanked around 10 points on the S&P futures without any news release and without any justifiable reason. The news and everyone seemed to forget this event and trading went on as usual after market open with the market rallying strongly in afternoon trade.

I think this is just sideways chop without any clear trend. We had also been rallying on decreasing volumes. Daily volume on Thursday was one of the lowest for 2010. I’m looking at the indexes making a reversal down by next Monday. This would indicate that we are going to continue tanking. However if the indexes break the high of the month, then we are going to continue going up for a while more. It is my opinion that the market has to correct soon. The longer it takes to correct, the uglier it will be when it does.