Monday MarketsFrom an article by a TA:
"If the market opens and trades higher with no wash out of Friday'slow, I doubt that is the bottom of any type for this leg down becausetypically after a large sell off like Friday, we should expect a loweropening followed by a rally intraday. If the markets open and tradehigher creating an inside day, that’s not going to scare me off mytrading shorts, and I’ll hold.
If we get the gap down open, I will take a short or two off becauseI’m trading the short side, and I want some cash to re-enter countertrend bounces, but I also want to hold a couple shorts because thiscould be wave 3 or C.
Here’s my immediate down side analysis: The markets have yet to putin any form of down side bottom structure, and nothing on the dailychart looks remotely bullish other than a potential reverse of thedaily MACD in the near term. The daily Bollinger Bands have started tore-widen with Fridays drop. If we gap lower Monday or Tuesday, Iexpect price to move down to the lower band, which is DOW 9,750,Ironically, the weekly Bollinger Band is the same price. The short termsupport area includes prior lows, and the lower daily and weeklyBollinger Bands, and the 50 weekly MA. The support zone I’ve beendiscussing is 9,700-9,900, and we may see a deeper push into that zonesoon.
After that, the entire move higher from March 2009 has a Fibonacci38.2% retracement support at about 9,500ish."