Hi Steve, I think that we just need to take each day one after the other here. Tomorrow I will be watching to see if 7900 will indeed Hold Support or if we will continue to decline (320SMA declining now). If we do Hold Support then 7950 and 8000 will be the next resistance levels to watch. Today looked a lot like just another Bear market rally to me, much like the move on Friday. Tomorrow we should find out if the Markets are going to have any legs to this rally. I Think that we are seeing a HOD at EOD and at Resistance here but we will need some type of verification tomorrow. I would not be at all surprised to see a move back to 7950 and then a retracement. Once again we will be back to watching the 100/320SMA and see if it will Hold Support. I really don't like it when we close right at the major levels but that has been what the markets have liked to do lately. The whipsaw could indeed continue. Enjoy the Evening Steve! :^)
Here is what we Don't want to see At least not if we are holding any Puts. I think that this 10 day chart also clearly shows why the markets found support at 7725, it was previous support. As on the Darvas thread we should have 7900 as the top resistance of this Box. The longer term trend still has it's box top resistance at 8075 though. Time to see if we are in a new lower trading range or if the markets want to retest the top of the previous box. As we talked about earlier, it all depends on the timeframe we want to trade in. I think that Steve (Jeff) posted something before about Shorting the gap up whenever the Stochastic closed near 100? We can see if that will hold true for tomorrow also :^)
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