First hour break was higher

First hour break was higher and thus the push higher. Again that 875 area proved to provide some support.

Crude

For those who are watching remember we had out target for oil initial move down to the $57 area. Since we are now in that area I would expect us to chop around there and/ or possible bounce.

First hour is in so look for a break either way to play the indices.

Good luck

All gaps FILLED

All indices have now filled there gap within the first hour, that's how we like it done.

Gap filled on S&P

Gap filled on the S&P so far but not filled yet on the DOW.

Gap fill

Looking for at least a gap fill here this morning-
Oil still seem to be under pressure

More Stimulus

There is more talk over the weekend of the California IOU's and the need for more stimulus. Folks I said it early in the year that we will get a rally and everyone will say we are coming out of the recession but it will just be a blimp and nothing else. Lower prices are in store and I think to a minimum we have a bear market for another three years with a possible substantial low late next year, we WON'T be in recover mode any time soon.

Weekend Updates

Got a few things to talk about but the first thing I would like to talk about is the 30yr bond. Although i think bounce are heading towards PAR i believe we will get a bounce here to the 122.1 area, there is also a possibility for a extended move to 127'3 if earnings are significantly worse than expected and there is a flight to quality of the bonds..
Next the price action in the S&P have now changed to negative and I have a projection down to the 821/819 area based on my analysis. Now the only caveat is when as I do have a negative time frame analysis till the end of the month of July, does that mean we head to 821 before then or do we attack that area after is too early to tell but one thing is certain we have developed a cycle pattern to lower price from here into the end of the month.
Next there is an obvious head and shoulder pattern in the charts which is setting up lower prices. Now if the pattern morphs it would definitely hit out below targets ad leave the bulls in a stalemate but not complete doom. As I have been saying I think there is one last hooray before the bear REALLY returns.

Remember we are in the summer mode here so I would not be going out heavy on plays, just stick to the bigger picture analysis and play off the larger patterns.

MARKETJEDI