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.

2 comments:

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.