Since 10:30 today the market has been under severe selling pressure setting the day’s low and ending the 5 minute down trend just after lunch at 2:15 pm reversal time. The market did rally at 3:30 pm into the close putting in a W bottom but price is coming into strong selling resistance at the 66.45 area. For tomorrow if we open neutral and trade to or gap up below the 65.73 area I would short the first sell setup at 10 am or 10:30 am reversal time looking for a target at major support at the 65.02 area and a 2nd target of 64.70 area. If we happen to gap above the 65.73 area, I’d look for the first pull back in this area or base break out higher with a target of the 66.15 area. My bias is still short, today we almost completed our M top pattern but we could also gap down tomorrow to the 65.00 where I would look for Major support to hold and look to take the first higher low long back up into the 65.50-65.73 area. If we gap below the 65.02 area, take the first 2 or 5 minute sell and look to bottom somewhere at the 64.70-64.50 area of support. Let price lead the way!
qqq12142012 1
qqq12142012
Longs:
MS – Daily 1234 pattern
Teva – Climatic watch
Shorts:
MGM – Climatic Watch
NOV – Break down continuation
WAG – Climatic continuation
XLNX – Climatic Continuation