Thursday, August 25, 2011

Bearish Reversal

The market failed to hold on to early gains in the morning and ended up reversing into negative territory and closing under the Trend Average, which is bearish. So we'll see how the market behaves tomorrow and most importantly Monday after digesting the speech from Bernanke. I get the feeling the market will turn down and test the 1101 or 1118 again but that's just a hunch at this point. Had the market managed to hold on to gains, it would have been positioned itself to break 1208 and turn the weekly trend up. But at 50 points away at this point and the VIX at 40, I am not so sure the market just yet. I hedged at the TA today so I'm using that as my stop.

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