Tuesday, August 18, 2009

Trading in the Vacuum

After yesterday's scramble to the exits we are seeing buyers stepping in to pick up some of the pieces. Buyers have quite a bit of room to maneuver but it's going to be tricky to get anywhere close to Friday's close.

The first point of contention will be the $99.50 level which acted as support for the first half of August.

After that buyers will be taking shares off panicked holders, particularly those who bought late through the July-August rally. But if the SPY can't close the day above $99.50 it will hand initiative back to the sellers.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts, and stock charts website

blog comments powered by Disqus