Directional Analysis

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID4261693

The past few days have been a little crazy to say the least. Especially today when it looked like we were going to be going higher after the three day pull back to back test the broken down trend line. Volatility came in toward the middle of the day to take it all back. After hours the futures took another hit when Moody’s came out and said the U.S. is under review to possibly get down graded from a AAA rating. The interesting part about this headline is the only thing to get crushed should be the US dollar and the Treasury yields, so what is the deal you ask? Well the dollar is getting crushed like I show in this video and I do expect the market to move higher, but it is expiration week for Options so Volatility will be hanging around!!!!!

A quick intra-day update to see where this Market is heading and where it could go from here. All the data so far does suggest we will be heading to higher prices, this is just a pull back after a couple of weeks of non-stop movement to the north.

This is an intraday update, part of your 3 video weekend update. I go over the crazy pattern we have been in called RST (Reversed Symmetrical Triangle) and why technicals are telling me we are doing just what we are supposed to. I guess if you want you can also rationalized it as what could have changed after a two week nonstop up move? Is one number really the tell of the over all Economy and health of multinational corporations? The answer is, NO!!!! This was just an excuse to take some money off the table after having no one day down in the past two weeks.

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID4261693