Will the bulls step in here?

September 22, 2006 · Print This Article

I stated yesterday that the chances looked good for a continuation of the short-term bearish move. Will it continue into next week? Weak seasonal conditions remain for the reasons stated in the past few posts and there are still a few bearish technical indicators that remain. However, we are reaching some important support areas, 1310 on the S&P to be exact.

The bulls were tested several times at this area today and were able to hold each time. As I stated yesterday, how the market reacts over the next few days should give us a better glimpse as to whether or not this recent move will continue. If the second half of September lives up to its historical billing then we could see the gap close in the S&P and QQQQ from 8/16. I still think reaching 1280 is possible on the S&P and then the true test comes. Until then we will take advantage of every trading opportunity that comes our way. So far this year has been very kind to our ETF Extremes strategy and we hope we can extend the gains in both of our strategies over the last quarter. Have a great weekend!

RSI Wilder (5) for September 22, 2006