The market is nearing a cataclysmic event and all traders, swing traders need to watch. The trend line below shows us that a close below could signal a hard sell for the rest of the day while staying above will no doubt take this market to $107. The markets are literally on a major point here on this Whipsaw Wednesday and looking for guidance. The nutty market has traded higher over the last two weeks after a big four day drop. As the market continues to just put minor up days together, we see the administration is doing whatever they can to keep this market floating and not crashing. So far it has worked and it has been impressive. Never before have you had such interference in the markets as what we see now. In any case, note how every wild card card is being used every day now to keep this market floating higher. Yesterday it was Bernanke saying the recession was over, today Warren Buffet said things were better than one year ago and he was buying stocks. Last week, Geithner had a town hall meeting to pump, pump, pump and let’s not forget Obama has been on tv sometimes twice a day to pump things up. Regardless of everything that has been said above, just follow that trendline. As long as we stay above that trendline, this market is going to $107 on the SPY. If we break it though, watch out!
