Today is Day 4 and the indexes are struggling. The big question is do they sit here and work off the overbought condition of the full stohcastics and reset themselves then another move higher to that 1180 (SPX) mark and the red lines in the other two indexes or is this it. We’ll soon find out. In the meantime, one could say we are in the zone though and it’s at these levels we will nibble today on a few issues on the short side.

Even AAPL came up to its uptrendline from underneath, kissed it and has started to pullback today. That’s a KODR or Kiss Of Death Retracement pattern so far.

In Summary:

The bottom line is each index is pushing the 50 day average with a resistance level just above that as shown in red on the daily charts. The 60 minute charts are overbought as expected. What we need to see is what happens the next day or so. Will we stall at the 50 day average? (S&P 500) or will we hit the red resistance lines and stall.

Caution On The Long Side Is Advised

By David Grandey

www.allabouttrends.net

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David Grandey is the founder of All About Trends, an email newsletter service revealing stocks in ideal set-ups offering potential significant short-term gains. A successful canslim-based stock market investor for the past 10 years, he has worked for Meriwest Credit Union Silicon Valley Bank, helping to establish brand awareness and credibility through feature editorial coverage in leading national and local news media.

© 2010 Copyright David Grandey- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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