The amount of indecision that the market has shown this week, after six previous weeks down, could easily be a sign of a looming upside reversal as the bears struggle to hold on to the initiative. As I noted this morning, the S&P 500 is on the verge of printing a weekly spinning top candle, which after a prior steep downtrend should put you on watch for a reversal. However, staring at the screens everyday and watching the intraday shake n’ bakes can be grueling, and drive you to drink eight fingers of whiskey.
As I write this, I see we have another fade in the market happening. It is a late Friday and odds are that most traders have called it quits for the weekend, so I would not place too much emphasis on what happens from now until the bell. As grinding as the past few months have been, the key is to survive with capital intact, leaving you in a good position to become more aggressive down the line when market conditions improve.
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[youtube:http://www.youtube.com/watch?v=6eYzXIx_9dA 550 412]
maker’s tonight
Blanton’s here.
Well said!
Whistlepig.
Good approach. In my humble opinion, fear is flooding the investor´s sentiment and we might be near the bulls comeback. If we start in a positive mode this week the worse might be over. We´ll see. Nice post chess.