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Tuesday, October 27, 2009

McClellan's and SPX Hourly

The McClellan's is very low and it can be said the market is due for a bounce just based on this. However when you look at the hourly charts on the SPX, there were no solid buy signals even close to be generated just yet nor positive divergence to hang your hat on. Nor is the RSI even yet oversold on the hourly. Not that it has to be....

So tomorrow will be very revealing to the wave structure.

I keep thinking we'll get a "GDP pre rally" right out of the gate and that my squiggle triangle is actually a market bottoming regrouping effort.

One other thing is that 1060 is gap support. Holding this support versus not holding this support is likely very important to the market. 1060 is an important level to the near term bullish/bearish case.

If we do head down to close the 1060 gap, I like 1052 as a near term bottom due to Fibonacci relationships.

Anyways, I ramble...
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