as i had a lot of things pop-up on my plate today, i won’t be able to do the comprehensive video coverage of the key stocks, sectors, and indexes that i was planning on doing but the gist of what i wanted to cover was that many of these stocks, sectors or indexes hit key support levels today, as shown earlier on the SPY, QQQ, and XLF charts that i posted. add to that the fact that many of those charts now have positive divergence in place on the 60 minute time frames and the odds increase that we could be looking at a decent bounce from at or near current levels which could last for as long as several weeks or more. on the flip side, many of the stocks, especially some of the key financial stocks, are at or near very critical support levels so if a bounce does not materialize, or even if most other sectors do bounce but the financials continue to sell-off, they could drag the rest of the market down with them.
in a nutshell, and keep in mind this view can change on a dime, my near-term bias is now skewed towards the bullish side. many the trade ideas on the site, (which have been almost all shorts) have recently hit profit targets for some very impressive gains so don’t hesitate to book some or all profits on those trades or at least lower your stops to protect gains. if you are a swing trader holding out for some of the lower targets on any of the current active shorts that still look good, you might consider hedging those positions with some longs such a certain sector or broad market etf’s that might have fallen to a key daily support level and are setting up bullishly on the intraday charts. tomorrow morning i will try to post a few of those charts but some the ones that come to mind are SPY, QQQ, XLF, XLE, & XLK. again, keep in mind that the intermediate term trend remains down for now and the markets are in a very precarious position, both from a technical (chart) perspective as well as a fundamental perspective (the euro-mess, rapidly deteriorating US economic data, rising US dollar, etc…) therefore, if you do decide to take some longs either for a hedge or a long only pure-play, just make sure to place the appropriate stops should those support levels give way in an convincing manner.