Wednesday, March 9, 2011

S&P500 must get above 1333 soon!

In the past 2 weeks S&P500 has formed a bullish pennant. I'm looking for violent moves in coming days. We spend enough time to consolidate, now is the time to get the big move. If big institutions want to squeeze the shorts they must send the S&P above 1333. If S&P gets above 1333 to me it would be the conformation of the bullish set up, but if S&P500 closes below 1319 it would be very bearish. In the case of up trend channel violation you should go to the sideline. Note as long as S&P stays in yellow channel bulls have the upper hand. I'm a bull as long as the yellow channel is intact. If S&P drops below 1304 I will go short.