The Q’s barely broke the 50% support level today which was around 54.50. The Diamonds broke the 23.6% 117.70. SPY and IWM are holding support at the 38.2% fibs. The SPY is approaching the diagonal support line. So I expect when it gets to 119.70 level it will pause. What it does next will either move to the 126.00 level if it bounces or drop to 117.50 level if it breaks the diagonal support. Either of these scenarios has us in a bear market. I need to study more how the bonds that Bernanky is releasing Wednesday will impact the markets. Their seems to be some chatter about it among bloggers.

I am of the opinion that the market is going to go down before it goes up. Fibonacci is supporting each of the major indices SPY 38.2% 121.00, DIA 23.6% 117.70 , QQQ 50% 54.50 and the IWM is between the 38.2% 70.75 and the 23.6% 73.21. SPY, QQQ and IWM are in a downward trend. The DIA is neutral due to a lower low and a higher high. This week is going to be interesting. I am going to continue to watch the EUR/USD. I cannot see how the Euro is going to survive. This should rally the dollar and drive the market down. Gold is in a bear trade with all of the metals. Most of the blogs I am reading are talking about the Santa Clause rally. I feel this is just a bunch of non sense. Let’s see what happens.

The SPY is holding at the 121.00 level. I read a few blogs tonight that seem to think the market is going up tomorrow. If it does go up it does not have far to go. It is making a nice triangle. Once again it may coil up. If it does then we will be in wait mode for the next move. The cup and handle I mentioned last night on the UUP is still looking ok on the weekly. We really need it to break above the 22.61 level for the move to be realized. We are in a few puts that really look good. I would like to see the market get below the 121.00 support level. We shall see.

Today went really close to what I discussed this morning. The SPY went to a low of 121.47. This area is proving to be good support. I expect this area to hold for a bit in the morning. Once the news starts to hit things might move. I can’t imagine what good news is out there. Bernanky said after hours that the fed would not help the Euro banks. This should mean that the dollar will continue to rise and the market should continue to move down. You can look at the UUP to see the action on the dollar. I just took a look at it and it is forming a cup and handle (pictured at the header for the blog). If it breaks the resistance 22.62 it will climb in a nice manner. It tried to get above it today but came right back.

Bernanky spoke and the market took off in a downward direction. I love this guy. The bears are in force. We should see the day go down and test the 121.00 area. Some of the Puts we are going to get into today are EOG, TXN, CSX and HLX. They have met the 2:1 ROI criteria. I am not sure what the option availability will turn out to be. If this looks good then we will be going ahead. Off to the office.

This market is not looking good. I am seeing the SPY at the top of a downward channel. 127.21 is the resistance line that I am expecting to hold. Lets see if it rolls. Here is a link I read this weekend that really sums it up http://slopeofhope.com/2011/12/crash-landingevil-plan-290-not-done.html . Enjoy.

Well today the market woke up. We rolled off of the 127.00 resistance. I will look in the morning for trades that are trending down with the market. I am expecting the market to move down to the 115.00 area.

http://news.yahoo.com/stock-futures-gain-ahead-key-jobs-report-094334471.html ECB has moved the pre-market. I expected to wake up and see the market flat again today. Well I was off. As far as the market goes I am waiting to see if the down trend continues. Right now we are at the top of the downward channel. I did look at a few stocks this morning. Most of the formations I looked at looked good but the risk is too high. I want the set up to show a 2:1 return. the best one I found is VXX showing a 1.4:1. So I am waiting to see how this plays out.

I looked at over 50 stocks this morning that have broken there various patterns. I do not like any of them. So I am going to sit and wait. I am looking for the next move to set up. The SPY blew through the $121.00 and the $124.00 levels yesterday.

Today is an example of the news blowing up the charts. We had a nice setup for a down turn and the news has now changed that. I had to wait until tonight to look at the news to see exactly what happened. Major Central Banks made it easier for European banks to get money. This rescued the Euro and caused the dollar to go south. When the dollar goes south the market goes up. Let’s see what happens next.