Thursday, October 29, 2009

Technical Picture - Another High Volume Distribution Day

Sellers are in control, however, we should get some sort of bounce, likely a dead cat bounce, as prices test support at these very oversold levels.

Transports are a good leading indicator, so keep an eye on the chart. Judging by how the transports are setting up, this correction will be a lot deeper than the other corrections we've experienced since the March lows.

Today we had lots of good, low risk entries on the short side.


StockFiend said...

Great charts and outlook. I'm thinking more downside if we don't see a bounce soon.

Jamie said...

Maybe GDP and initial claims data will provide some clue as to direction this morning.