Sunday, October 25, 2009

Market Talk

We've been talking about this SPY 110 gap-fill area for months and now that we're finally here the market seems stuck. We have formidable resistance above and a solid trend-line below. One of them has to cry uncle soon. For now we've switched from break-out trading to buying support. If SPY 110 finally successfully breaks to the upside then we'll go back to break-out trading. If the trend-line breaks down we'll switch to shorting support. But for now what has worked very well is buying support, on daily, and also the 50 SMA.

November should be a very interesting month.