Monday, November 26, 2012

Sharp Counter Trend Bounce

I haven't able to post my comments last couple of weeks on the Markets due other commitments post Sandy storm and due to thanksgiving holidays.  Here is my take on the Markets.  Markets have made sharp recovery last week after going down 10% plus from september highs.  Last week was a holiday shortened week.  Nevertheless there were some eager buyers bidding up the Market.  As usual breadth was lacking on the upside move.  Today's action was encouraging in that the Markets held on to their gains.  In the last 5 days the Markets have regained half the losses from september highs.  It remains to be seen how it performs over the course of next couple of days.  The downtrend is in effect until the 143-144 zone is taken out on the SPY.  Until proven otherwise I would consider this action a counter trend bounce and will be on the look out for shorting opportunities.

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