Intraday Commentary ~ 08/25/2009

2:38pm
The H&S that we have on the 5 minute SPY is breaking apart right now, with a target of at least 102.50-102.60… oil has somewhat bottomed but boy did it fall hard today, in anticipation for tomorrow’s inventory numbers…

1:15pm
The market seems a little toppy here. i’m surprised we were able to rally beyond yesterday’s high, but we never closed above it on the 10 minute candles… the energy and commodities are selling off quite sigfniciantly, and financials seem to be weaker than the overall market today, especially if you take into consideration that a lot of the individual stocks are forming H&S formations and todays rally is the right shoulder of the H&S.

12:00am
Markets are slightly down. I am on a business trip to NC and NYC, and so i’m sort of in and out at this point. I do believe we have put in a short term top yesterday, but we might just being a consolidation pattern again for another move higher. The volume yesterday was unimpressive, but after hitting the resistance line of the megaphone formation or the wedge formation, depending how far back you look at it, then the likelyhood scenario is another sell off..

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