Judging by the amount of shares that have changed hands by the price volume bars we’re in limbo right now. If we can overcome the 8250 area with high volume then I think we have a shot at hitting 9k on the Dow, which would be right around it’s 200 moving average. As bearish as I’ve been I’m trying to see the trade from both sides. Day after day the market refuses to drop, which leaves me to wonder if we just may pop a little higher, squeezing the shorts even more. I’m by no means jumping in the bull camp, I’m just trying to speculate when this little bear market rally may end.
I’m content to sit on my cash until I see a decent risk/reward trade. Of course, we could be in the topping phase as we speak and about to fall into the abyss. If that’s the case I see a retest of the lows coming. If you’re not familiar with these types of charts, check out Jake Gint over at iBankCoin as he does some good chart work.