Originally Posted by Vanity
Intraday reversal and US treasury moves this week are confirming a possible ST bottom. The rebound has ran into 1310 downtrend resistance and we will need to hope for a good, and I mean GOOD, meeting with Bernanke tomorrow. Today's trading Volume is on thin ice, less than what we were seeing last Friday in the sell off. Either dead cat bounce or a ST rally that does (it's possible) have the potential to make a new high before a crash.
I added some more small positions back into shorts. Will be watching tomorrow for clues as to whether a long should be initiated.
I definitely think that we are on the 1st leg of the 2 legs going up. There's no question about it in my mind. We should be expecting a higher high ahead. Rally target could be around 1340 but I still think we have 50% chance of SPX making a lower low.