Once again

Once again the bear flags were a big trap. Made note of it yesterday and that's why I cautioned about getting too bearish in a rush as all pullback have been buy able

Bear Flag

Looking at the indices they are all forming bear flags BUT caveat is that we have seen this in this uptrend and the don't pan out. Maybe the North African, middle east problems is just pumping fear into the market for a mild pullback.

Last week

Last week we were looking at the following lower points on the S&P 1299.50, 1289 then 1284, seem they want to hit them. I am going to be doing some hedging here as I am not getting clear signals on the daily chart at all. In the meantime Gold running higher and Oil seem it is slowly but surely going for the $113 I have been speaking about for awhile. Still don't think we roll over and die here but just a breather so we can attack those highs again, IF I am wrong then it will be very early to get on the ride down so not an issue.

ok

Ok 1313 hit- let's see if we bounce

Correction

More like 1312.50 than 1314 for support

1332

So we gapped up into the 1332 which is the 78.6 Fib retracement and we have since sold off. Nice set up but it caught be off guard as this week and the first of the month is usually strong but we are seeing some adverse market reaction with Bernanke's speech.

Next major support is 1314 area

early weakness

Early weakness here surprisingly for the first of the month but looks like the unrest in Libya and rise again in Oil has equity traders on the fence.