Market Analysis

Well after that +1000 point rally bottom to top, I think we may be seeing more long-term downside within the next few weeks. I stated in my last post that resistance on the DJIA would be at around 12790 and we ended up coming closest to that level last Friday at 12760. I hope you all used this rally to close out long positions and cut any losses. Also of note last Friday, we saw intraday double tops form across all three major indexes at the following levels:

DJIA: 12750



NASDAQ: 2400



S&P500: 1394



It looks as though we have hit a short-term top across the board. Look for more immediate downside in the coming weeks. If you are looking to get short any of the indexes, take a look at SDS, DOG, QID, or the DXD. All four are great ways to trade around them. Look again for support on the DJIA again at 11650, on the NASDAQ at 2200, and the S&P500 at 1275 and should those levels fail, watch out below, because any longs will be punished. And I've stated it before and I'll state it again: we are in a recession/period of slower economic growth/slowdown/whatever you want to call it and the market will always tend to reflect that.

Also, I have had many emails asking me why I have not been trading recently. This is due purely to the fact that school has started up again and I have been unbelievably busy as of late. I hope to resume trading sooner rather than later. That being said, however, the market analysis updates will continue to be posted on a regular basis and I hope that will help guide you all through these choppy markets.

Updates to come.