Tuesday, May 25, 2010

Late update

The strong afternoon rally makes it likely that the early morning low at 1036.75 ended the drop from the April 26 top of 1216.75. I expect to see a fair amount of essentially sideways action over the next few days with several 20 point swings both up and down. Once the market stabilizes a move to 1300 should get underway.


spycharter said...

Today's rally was pretty unexpected. But the volume was relatively low (compared to the big down days during the correction). I think there is going to be at least one more big down day (not necessarily tomorrow) where the volume will be the highest that we have seen yet. That should signal the bottom.

Adsense said...

points 11 12 13 and 14 perhaps ??
i can see that , there is an oddbal cycle high due end of month
and a cycle low due june 1 and several bullish cycles into mid june . i think a move generally upwards thought the end of the week would be normal . a move equal to the upwards move from the crash that didnt happen would make the case for strength into early monday .
good luck carl

Chad said...

I expected this rally because i read Carls Blog everyday. :)
i as in small i had to wait to the close to get my es puts filled.

We are coming into an interesting time period for the next five days where the markets should tank big time.

but this is just my humble opinion and i guess this is what makes a horse race.

Stasi said...

What can I say Dr Carl Futia: Impressive!

Naveedah said...

Great Sir!
01:02am in London,working on charts etc ES_F. 1083.oo
Absolutely your support in difficult market.

Kishore said...

As a large majority of the stocks (36.6%), on their daily charts, are now in wave 3 down, this rally has a very high probability of failure.

Even though today looked like a "bullish" day, the above-mentioned percentage increased today from 32.8% to 36.6%.

ES Futures or SPY ETF alone will not be able to keep a sinking ship afloat.

Carl, the ship has been torpedoed.

Shorting rallies will be a fair play.

Going short on rallies will be less risky than buying the dips and the market will now be more forgiving to the mistakes by shorts.

Rajeev Bharol said...

When I saw the rally, I knew Carl will soon come up with this kind of post...Starting to know how Carl thinks.

Atrader said...

The market will get to 1126.25/1128/1134/1148 before it drops if it drops down and test 1036.75 and lower.

However, 1036.75 is the low imho and its upwards for now to those numbers above.

Once past those numbers is 1176.75,
1207 and up to 1223 on the way to 1320. It should zoom past 1216.75.

Naveedah said...

I am holding night longs from 1075,added1080,now1083but while writing this note,ES_F is 1084.50.
Atleast 1095+
Thanks Carl.