Thursday, July 24, 2008
We are in the pullback zone identified yesterday. Note how the tick was positive even as price declined. Neither price nor the AD line was confirming that signal line. I'm lightening up on my TWM (double inverse Russel), but will keep some on hand until/if we see signs of a turn.
12:00PM PST UPDATE: If we can come down to about SPY $125 by the end of tomorrow, news permitting, that could set up a nice inverted-head-and-shoulders technical pattern forming an upswing Monday or Tuesday of next week with a good sized upward objective. That said, today could technically fit the bill as well, maybe put a bit on at the close with an associated stop while stalking a potentially better entry ahead.
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