Saturday, October 31, 2009

S&P500 Short Term Supports (10/31/09)

We got the "dead cat bounce" that I mentioned in my previous post.
S&P500 volume was 50% higher than its average in down day, this is called institutional selling.
We are at a support (~1035) if it won't hold the next stop will be 1020 then 990-1000 which is 10% drops from high.
We could easily go down 10%; so far we dropped 5.8% we have 4.2% to go. Then we should wait to see if big guys are going to press buy button or not?

Don't be stupid and start to buy just because a support line held, wait for big institutions to start the buying frenzy then there is plenty of time for you to buy.