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Market Recap: Open Sold, “Blind Buyers” Above 900 Once Again

November 10, 2008 5:18 PM

samurai.jpgWell today was the classic gap open that was sold. Many of these days close at the low of the day. However, there continues to be blind buying above 900 regardless of what the charts say. This has continued from the Thursday’s close, Friday and today. They are not going to give up this nonsense until they get crushed.Friday’s low held by a thread, but even that was likely not enough to push through 900 as I consider Friday’s low completely meaningless.

I mentioned at the open that the gap was sold - and down she went, as was predictable. It reversed above 910 at 913 as i thought was likely. It ran to 927 and reversed again and ran all the way to 907 and change as a low. Then the same nonsense came in “buy above 900″. These lows are simply not believable. Big number? Buying at that number? This reminds me exactly of when they bought at 1200 on the SP and I continued to call it complete nonsense and predetermined.

At any rate, tomorrow may get very volatile, depending on where we open and what happens early. If we open flat to higher, I am very skeptical to say the least. If we open lower, then we need to reverse early in the day I believe to contain the selling. 900 on the SP continues to have buyers. How long that will last I am not sure. It is frustrating as it is simply buying on a big number. Today’s high is very important going forward, but would be far more important if we had made this high tomorrow. Either way, there will be caution in that area.

Keep in mind that today was not what I wanted to see to truly take this down in coming days, but could still happen. What I wanted to happen was to trade modestly higher today and reverse off a new high tomorrow. If that had happened, we would likely see a lot of pressure the rest of the week and 900 would be likely long gone. Today’s action, while an issue, is not what i consider a true reversal, although it was a rejection in price on an intraday basis. Therefore, it is about as clear as mud here and the intraday charts should continue to dictate - unless we clear 900 to the downside.

Written by Tom@StockBlade.com · Filed Under SP Futures 

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