Have you ever read Pring?
This was brought up a couple days ago. However, the person that brought his name up is arguably someone I wouldn’t want to take any kind of financial advice from.
In your opinion, are his lessons/books worthwhile?
Nope…what’s that about?
Interesting…not the first time I’ve posted the new high/low issues on the web to show divergence.
On the NAZ we have volume divergence as further confirmation. Do keep in mind the NAZ is trending/channeling with a more realistic slope than the DOW as well.
On the DOW the volume was massive if the charting package is correct. So DOW’s volume doesn’t confirm the divergence but for that amount of volume to go in and the market to hold its trend speaks volumes to me (no pun intended). The blue chips took a beating as a whole and are holding their lows despite massive volume. What might that tell us?
Edit—
Added VIX to the charts. VIX shows divergence in terms of volatility/panic as well. HRMMM??? Doom n’ gloom is becoming less actionable as it would seem. I must be nuts, no? LOL
What’s up today? Somebody is happy aboot something.
No kidding. I just checked the Dow and I was like wtf?
Someone must have purchased industrial stocks with all of that freshly printed money. lol
Just checked fauxnews.com
FOXBusiness: Wall Street rallies as Treasury Department releases details about its bank rescue plan
I don’t care. It gave me a great opportunity to profit and get my money out of the stocks I did not want to be holding any longer.
Updated charts…Hope you guys enjoyed the technical bounce. 
Market structure works for a reason fellas. 
Pretty bullish on the 60 minute chart. Gapped right back into that rising channel and above the prior high. Passed a lil pullback test even.
Bigger picture though…we will be encountering HUGE supply in this zone. It’s a damn big zone so be sure you know how to play the game if your looking to go in longer term. From R1 to R2 resistance you’re looking at almost 1500 points. R1 isn’t something you want to short at and just average down on all the way up. If R1 breaks RUN and look to short at R2. This could be one of the times where averaging down leads to margin calls and wipes traders out. This also would potentially propel the market upwards towards R2.
We do have a minor trendline and the shorter MA’s acting as support below. I would not anticipate R2 testing without some kind of consolidation building or an insane squeeze. This rally has been a bit too vertical for my liking. It’s pretty emotional based on the slope. Think about it, if there were a deep correction would it hold? NOT LIKELY. It’s vertical with uber tight pullbacks for a reason, and it’s not because the market is all the sudden bullish with all that resistance looming overhead. HRMMM.
So is it going to go up or down?
You be the judge. IMO it’s hurry up and wait time. Too late to get long, too soon to get short. Short side is the proper bias longer term based on technicals, but this emotional rally action can cause havoc if you go short on equal emotion. It’s volatile nuclear financial warfare…play it cautious.
R1 is a great level to get short and maybe begin to built a small short position. If/where you place the stop is tricky though…volatility should play a factor bigtime in your decision to play or sit on your hands. I’m on the sidelines here myself.
R2 if it hits is even better because the stop is much more clear. It’s also a great level to deply all the dry powder you’ve saved up. LOL
I present the chart, you develop your own trading ideas and accept the full risk. 
Added—
BTW, you left out one option on your question. CONSOLIDATE. It could do nothing, though unlikely given the emotion flooding into the market currently.
We keep smacking our head on some serious resistance the last few days on the S&P. I think we finally broke through today so I will hold my call on the up or down for a day or so. I still think its due for a big downturn I just am not sure where it will hit. That is always the million dollar question isn’t it? Tight stops for anything long the next few days.
BORSON? RIMM may have been a catalyst for hidden selling in the tech sector.
Just like the DOW chart…this is a risky short at this point tho. Sure this resistance hasn’t passed yet and there is the channel looming, but if the channel can break and hold the odds of a soaring test of the top trendline is very high. Don’t forget there is support below as well since that zone of supply is now a demand zone they may defend. BUT it’s counter trend in the macro trend.
MARKET STRUCTURE fellas! Trust it. It will improve your odds.
I’m short oil and financials right now with a stop if the dow 8000/S&P 835 resistance breaks significantly. I’m looking for it to keep smacking off and it HAS to head down at some point. The bearish fundamentals are still as there as ever. These short term gimmick fixes can’t last forever.
Why has gold been dropping?
because people have more confidence in the economy now and have been buying equities instead.
it also went down a little when IMF announced a gold sale.
For you guys that are premature shorts. You could use daily which is potentially near the most likely reversal point. OR you could use the weekly and see just how much further this has the potential to travel against you. This was why I’ve said recently it’s hurry up and wait time. We haven’t even tested the daily trendline yet. There’s nothing wrong with taking a taste at the horizontal structure resistance I suppose but the trend hasn’t given an inch. It’s bullish till proven otherwise in the micro trend.
Be careful here. Timing is everything.
Hey tin foil hat crew, the ones that said the bailout money was going to never be seen again…
Many of the banks that turned a profit this quarter are already paying back their TARP funds, with interest. GS is the latest to do so. Just thought you should know.
^Yeah except some banks are being hassled and told the govt still wants control of their bank.