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Tuesday, October 2, 2012

Daily update 10/2

They gapped it up again, but no bulls came to the party.  It seems the dip buyers are having trouble finding rally chasers.  The short term trend has changed to neutral tonight.  Here is the daily SPX chart.

Another attempt to get above the 18 SMA failed.  How many more gap ups are they going to get?  Lets zoom in to the 60 minute SSO chart.

The bears smacked the gap up right out of the gate.  This pushed the market down to the main support line.  That line was tested and tested through the afternoon before a late day lift into the close.  Notice that rally stopped right at the down trend line.  Clearly we are running out of room between the lines and a decision on which one to break is going to happen tomorrow.  I would think a decent move will result.


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