Tuesday, November 18, 2008

Technical Picture - Nebulous

The day started off on a mildly positive note with HPQ's upside guidance. But that didn't last long and by midday bears gained control, pushing prices all the way back down to last Thursday's lows. The retest precipitated another short squeeze in the final hour, but for the most part it was choppy. We closed just above yesterday's close which is short-term positive, but overall, the big picture remains nebulous.

The price action below the VIX's primary trendline, looks like a bearish flag. A break of the flag pattern would be decisively positve for stocks. We'll keep monitoring it closely.

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