UPSIDE

Well here is what is was saying. The upside move I was expecting happened this morning. It is just one hour into todays trading but I can definitely see the uptrend coming in with us being +180 points on the DOW. BIDU ANOTHER $10 and FSLR ANOTHER $5. Lets see where we finish today but I definitely think we get over that 12500 area this week

Tuesday

We’ll we did bounce a little yesterday although it took another flush out of the market open to do it. Following the mid-morning reversal off the lows, we rallied nicely into the close finishing near the highs of the session. The early down-leg kept us from advancing too far on the daily charts; absorption I call it as volatility and gaps absorb most of the buying pressure and it’s a market tone we have been witnessed the past couple of weeks, especially in the last few sessions. In fact we seem to be digesting the recent push-down forming bear flag/pennant consolidations and still look to me like we will make a move lower.

I wouldn’t rule out the possibility of continued upside for another day first, but I think the more likely scenario is a pull-back for Tuesday or another narrow range session. If we do break to the downside on the daily market charts, I would be prepared for more short-setups. A rally would have to clear the last swing highs from 2/1 before I look for a prolonged upside move.

Gold is currently morphing a bearish pattern at the highs and although we are in a bullish commodity run I am still looking for a pulback in GOLD to the $860 area of support. Also lets see if Oil decides to take another go at $100.