Stock Market Analysis – 08-27-2010
Today was another volatile day in the market, but when all is said and done, we’re still at the same place we started the week at. The dragonfly doji on the weekly charts would be bullish, but since we just had alternating up and down days I’m not sold. We’re sitting at the top of short term resistance, so unless we break that, I’m still wholeheartedly bearish.
The fed is acknowledging the fragility of the economy, but there appears to be some infighting about whether to stimulate the economy before a new downturn is confirmed. While acknowledgement is the first step to avoiding a plunge back down the $700, continuing this downtrend is still likely in the immediate future. Having said that, $1040 has held up a couple times now, so I’m setting some bullish orders and tightening up my stops on the bearish positions. The summer doldrums are ending soon, so I don’t want to get left behind whichever direction the market chooses to go.
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