Thursday, February 24, 2011

Bulls defending the 1300 level

Tipycal bearish action, a short jump up in the morning then moving lower. Do you remember the action 1-2 weeks ago? Market down in the first 30-60 minutes then establishing higher highs. Now it's the same but in reverse which is a good confirmation that the leg down has more room to go.

The only bullish sign it's bulls' stubbornness in defending 1,300 level. Bears made 3 attempts this morning and one yesterday. Let's see for how long is going to hold.

Also be aware of the fact that VIX is 1% down despite market being down which frustrates me because I have a few options and they are much lower today with SPX at 1,300 than were yesterday with SPX at the same level. Options depend a lot on VIX.

Anyway, market behaves in bears favor this time and a third day in the row on the downside is going to consolidate bears' position. Let's see if market is going to slip bellow some key levels, 1300 or even worst SMA 50 (1287).

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