We've seen a rather big market ramp on the latest Bernanke statement..yet..all is not very stable in market land. The metals which soared..have no dropped almost all their gains, and the indexes are looking VERY spiky on the hourly charts.
I think today is a reversal day. Opening jump higher..but then a major swing...and a red close.
Its a been a long whilst since we've seen such a day...but the signs are everywhere, including Oil..which snapped lower, bounced..but is now on the slide again.
*Despite a little reluctance...I am SHORT, Rus'2000, via IWM.
I think we have a reasonable chance of falling into the memorial day weekend.
Bears should keep in mind there is a mid-sized pomo Thursday, so even if we close in the red today..and open down on Thursday..there is a VERY significant chance of a Thursday bounce.
Bears MUST break the rising daily 10MA, currently 1653.
A daily close under that..will open up the much anticipated retracement..down to around 1600/1590s.
UPDATE 11.20am... a micro-bounce, but the 15/60min cycles look good for latter day downside..and the daily VIX cycle IS ticking higher.
This could be an interesting remainder of the week, but as noted...bears must beware of the Thursday mid-size POMO.