Tuesday, April 21, 2009

Bear Wedge Break

875 resistance turned out to be an opportunity to take profits on bullish trades and dabble with entering some bearish trades. With yesterdays downdraft, the S&P broke below the bearish wedge.... an obvious victory for the bears. Given the significance of the trendline break, I would expect to have more downside in the days to come. (click to enlarge)

In retrospect Friday or early monday would have been the best time to enter something bearish. Any time I miss these *ideal entries* I generally drill down to a smaller time frame, such as the hourly, to look for subsequent opportunities to jump in. The 60 min. chart is now in a downtrend- If it can muster a rally back up towards the trendline, that may provide a *second chance* for entering bearish trades.


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