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Today I update my fellow viewers on what the last 2 days of action really mean for this
market. The DOJI candle that formed today on incredible low day could be viewed as two
things: The first, is that it is a consolidation pattern for the huge move up that we had
on Thursday. The second is that it is an indecision reversal candle. i would believe the
former only if we get another day of consolidation down on low volume. However, I believe
the latter because there are a lot of resistance which points could point to a move lower.
We formed a double top area at 922 on the SPX, and this could actually be the top of the
right shoulder. As we form the Head and Shoulders formation, other resistances such as the
923 level, descending channel, 20 SMA Daily lie overhead and could provide a strong push
lower. Monday's action could be one of a fakeout, we might get a rally in early trading to
hit those resistances and then fall down from there to at least down 1.5%. If we fall down
on low volume though, I will look to position myself long. My other advice is to not get
too bullish before the 923-924 is broken. And also to take profits at the 880 level if it
is reached at any point next week. We could very well break 880 but i think taking some
profits off there is important and essential. I look at the SPY, AAPL, GS and VIX

Have a great weekend!