Tuesday, October 21, 2008

10.21.08 - Volume Spike into Mini-Meltdown

Stabilization was the word for the day until a mini-meltdown about 15-minutes ago. Getting a little support at S1 (SPY $95.60). The five-day would be the next level to look for a bounce, but I'd remain cautious with any counter-trend trades after several days of gains.

CNBC - 40% of Trading Volume is now ETF Based...

10:05AM PST: Hit the five-day (SPY $95.40). No reason to think it will hold as yet.

10:50AM PST: MAs held, but the VWAP proved predictable resistance. Trend is down -- but anything goes!

12:05PM PST: That was the third test of the resistance line drawn off of yesterday's aftermarket. Hmm.

12:50PM PST: That was fast. Back down to the MAs, and no sign of holding.

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