Post Market Thoughts: Seems we got a signal today. After a 4 day long tops on the DJIA. My feelings yesterday, (which I posted on another site, copy below) that there is an underlying anxiety out there, proved itself today in the last couple of hours. Actually what happened is a typical reaction when there is so much trepidation. It becomes a consensus and then, ta-da! After all that waiting, there’s a strong reaction: in this case a sharp up, the original trend, then a quick down revealing the anxiety and creating a sure confusion, which is followed by some panic. It also revealed a lot of sale targets were hit at 9900 area.
What’s next? Watch to see if each high is met with a sell, or that each low is met with a buy.. the higher high/lower low scenario is one of the most accurate way to tell the trend.
Let’s see if we retrace near the 9900 on the $DJIA . Noticing that the $DJIA is still being supported by the 10 DMA yet the 18DMA is moving away and trended lower on the daily chart. I’ll be watching to see if the two shall revert to trend the same way.
I’m expecting a sharp drop followed by a rally in the morning. But keep honing my expectation to be liquid: “be like water” which is easy for a Cancer. smile
How much we retrace will be telling. Me, I’m thinking to the 9830 area, which is near those quad top days. After that, anything goes.
Happy Trading, Living and Dancing
Anni
Posted 09/22/2009:
Post market thoughts.. this market is definitely setting up for something. Throughout the day there was an underlying anxiety. this could be nothing by tomorrow, or it could build and become more, but until it happens we won’t know for sure. There was one more element in play today: the very real threat and warning about a terrorist threat for all public transportation, entertainment venues. We need to keep in mind that, political or worldly news can also set off selling.
