I still can't find much leadership for any type of rally. Although tech and small caps had a decent day today. Usually those can't lead the market though, but we'll see.
We have the S&P in a triangle or a channel right now. Either way, it is right near the bottom of the triangle or channel. I will post a chart of the channel, because I think it is more relavent longer term if we bounce off the bottom;
We also have the XLF in a giant triangle on a 20 day chart. That triangle only has about 3 days, 4 at most until it terminates itself. My guess is that whichever way that breaks is which way the market will go. Obviously a financial break north will send the market higher, a financial break down will make it nearly impossible for the market to rally. Here is the XLF chart;
So.. i think market direction will be settled by Friday. We are either going to head to the top of the S&P channel, which is near 1000. Or the XLF will fall down out of that triangle and we will AT LEAST test the previous low at 747 on the S&P.
Good luck trading! its rough out there.
CJ
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