Well I had a very busy holiday season, saw some family members I hadnt seen in years, so haven't posted in awhile, but time to get back to it!
Yesterday we got a big reversal from heavily negative to positive territory. This is always a good sign. But... we took a lot off the move near the close, this still could just be an oversold bounce, financials are not really joining the reversal attempt so far. All of those things are obviously negatives.
The reversal yesterday does not mean the downleg is over... yet. Today will be key to see if strength shows back up in the financials and we can hold the rally as the futures are pointing towards a higher open by about 10 points as I type this.
Key levels... all fibonacci retracement zones of the move from 747-942.
896 ( 28.6% )
867 ( 38.2% )
844 ( 50% )
821 ( 61.8% )
788 ( 78.6% )
We are apparently going to open over 844. So key will be whether we run north and try to take out 867 or fail on the attempt to rally and fall back under 844.
I think taking out 867 or making a run at it, means we are going to blow north real fast through the inauguration. Rally attempt fail back under 844 means we have further to go and 788 would be in play.
Good Luck Trading!
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