The Dow Jones average is once again gunning for a congestion area. It is closing in on its downtrend line andÂ is not far beneath aÂ horizontal line of resistance. 12750 should be watched closely for a reaction. Also, the bulls need the Dow to maintain the 50 day average.
A trend following and trading rangeÂ setup would haveÂ one get short around 12750.
I will become cautiously bullish should the Dow test and hold the 50 day. The Dow has been the strongest of the indexes.
The SPY is still floating beneath its 50 day average and a falling line of resistance. This resistance must be broken.
The Nasdaq is still in need of some repair. 2330 looks like a good place to watch for a reaction. That area will get the bulls above resistance and the 50 day average.
I am still bearish. I do not believe there will be enough cash committed to push the markets through resistance. I do not think thatÂ enough investorsÂ truly believe this to be the bottom.
However, it will be all I can do to not buy some stocks tomorrow for a swing trade. I may just add to my [[MBRK]], and try and sit the rest of the week out.Â
I am damn tired of shorting. Lately, short profits must be harvested intra-day, and that has been difficult for me to do.
One important note: If this turns out to be the bottom, I will never ever short stocks again. The government seems to want to ensure thatÂ I can stay fully invested all the time and never see greater than aÂ ~15% drawdown.