Market Review 7/30 Markets Winning Streak In Jeopardy

I believe the market is ready, and almost begging for QE3 and some action out of Europe and that is why the market has been bouncing of a technical support level.  Just as things seem to be on the verge of getting bad.  The central banks are in prevention mode of keeping Europe and the rest of the global markets from falling into the financial abyss.  I am glad that they are I certainly do not want to see as bad a crisis as the U.S. went through in 2008. 

So how to trade this market.  Today saw a indecision candlestick form just above $138 and the way that I would interpret that is we could see a very short swing down over the next few days, after all that has been the pattern of late.  As it reaches into the support area of $133/$134 the market has been back stopped by Fed speak to do what is necessary to keep the markets viable.  That is when the markets have been boosted.  So it is trading in between a support and resistance channel.

Any big break above $140 could be very good for the bulls and you will mostly likely see buyers begin to get back into the market instead of on the sidelines.  Any serious break of the channels and $134 on the SPY could see another big move down.  Trade the way the chart is set up based on your time frame.



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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives