10.06.2011 -- Directional mystery

We are still below 3 very important areas of resistance, but we have broke enough resistance that we must now lean towards a new trend of going higher.

We are up nearly 100 S&P points in 3 days. Obviously there's going to be a pullback here soon. It will be key how powerful that is and if any support levels break down.

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Key Levels

Upside -- Right where we are (again), 1180 (50dma), 1210, 1245 (100dma)

Downside -- 1144, 1133, 1121, 1098

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SPX Daily;

We are back to a state of rolling the dice.

We have a bearish set up inside of a bullish set up. Neither is broke.

We have multiple EW counts possible.

We have some high growth stocks rallying and others red or flatish. See AMZN, CMG vs. LULU and PCLN.

Financials are in a serious short squeeze.

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I wouldn't touch this market with a 10 foot pole until something breaks..

Inbetween the 50dma and 1098 is a roulette table.


GL

CJ