1110

Anyone see where we stopped on the downside 1110!!!!!

Man I guess I am not too rusty after the holidays. This morning I pointed out when we were -88 on the Dow that the first hour will likely mark the direction of the markets and that's the reason I said we should go lower. Wow that was dead on we are now -200 and we really look like we are forming a bear flag on the hourly charts.

I will run some more points of control tonight to see where we can go but a break of 1110 would not be good for the bulls. Next point I have here on a quick look is 1098

DOW

Not holding yesterday's lows. Remember first hour is here and most traders will trade off the first hour trend, so might go lower here

This level

Remember this is the level we started the first trading day of the year. Essentially we have made ZERO progress in the markets for 2010, that's something to watch carefully.

Thursday

With the big banks all reporting already lets us see if the technology firms will blow out and send us higher. I am just following the trend of the last 3 quarters but it is anyone guess. Folks we have started the year in the same narrow range as the end of last year so technicals it is difficult to ascertain where we will go next.
I won't guess but I can surely say with confidence their is a 5 wave pattern completed on the upside since the March 2009 lows.

We will see soon enough.

Notice what was yesterday's lows 1125, dead on!
Next level lower if we don't break the highs would be 1110.

Low of day

Interesting we stopped at the 1125 number and bounced. Nothing like technicals. That area could provide a significant bounce possibly to the 1132 area.

Opps

1130 broken- 1125 was the last area on this upside that had difficulty breaking through. I guess 1110 is ultimately on the way.

Action

Action is very interesting here - A lot of distribution going on, also remember we have around one week left in the month and if I can recall we started the year around 10580 area. Why am I mentioning this? well because most traders will say January performance is usually a barometer of how the year will go.