The DIY Economist

The down day today has been as impressive as the rally recently. A pivot low was broken, suggesting a possible reversal of trend. However, strong support lies at 1020 on the S&P with 50-day SMA, the prior congestion zone (blue rectangle), and a trend line converging. A break below that level would be ... unfortunate.

So I finally decided to ditch the POS that is VXX during that last pullback. That might mean that the market has topped, or it means that more frenzied buying will take the market higher. Are we overbought? Probably. Can the market push higher? Most definitely. Long biotechs going into the winter season with swine flu ...

Here's today in a summary: Market find a low in the 1st hour Bounce right off of S1 Makes a new high at 2:30 right at R2 Plunges 20 points in an hour closing decidely negative. Fed days are bizzare.

headfake.png That says it all, basically. Moves these days are really more prone to fakery than anything substantial - very impulsive in nature. I maintain that the move above the 940-950 range is probably fake, but the makret seeks to prove me wrong these days.

We got a slight rally at the close today as we retested the 1000 breakdown. Something that looks like a downwards channel on the 30 min charts is now taking place. I will look to close out VXX for now at the 980 level. A sell order at 62.5 never triggered, which wiped out most of ...