Intraday Commentary ~ 10/06/2009

2:44pm
A break of 105.15 would mean the end of the push lower as we have an inverse H&S breakout… the bears need to push this market down now if they want to form a reversal day.  

2:27pm
If you are short and want to get protection to the upside , SPX at 1047 or 1042.20 is a good place to be buying longs.  
 

2:10pm
Financials disagree with the rally. XLF down.  

1:46pm
Yes, we are up significantly for the day, but lets not forget that we gapped up, therefore even ending the day at these levels will not be bullish because we have reversal candles on a lot of stocks, A LOT OF them. Bulls need to push us  above 1055 or higher for me to believe in a sustained upward trending into tomorrow. Bears breaking 1052.50 is important but ultimately you want to see a break of 1047. 

12:52pm
Bears finally back in, resistance held. But for bears to be better off into tomorrow, we have to see more downward action BELOW 105.30 on the SPY.  

11:32am
Last resistance for the bears was hit a few minutes ago with the perfect retrace of the wedge (120 SPX )
SPY120 
 

10:41am
SPY 60 minute. downward channel potentially breaking unless bears push lower soon:
spy60 

10:28am
I got stopped lossed on almost every position with small profits and AAPL with small losses. The Hedge fund was stopped loss on WYNN, GYMB yesterday.  S&P still has to break the 1057 level, if it does so, we will see more upside. AMZN, JPM, SBUX still in play. 

2:46am
I am back but will start commentary late tomorrow. I wanted to say that there is still a potential for a move higher to 9650. That said we are overdue for a pull back, so if we open lower I would be looking to get out of shorts and wait for the market to bounce midday and short at the retest of the broken small wedge ascending support as resistance at 9650 or a max of 1057 on the S&P.

If we get a pull back early tomorrow, going long with a stop under 1018 still works. Going short with a stop over 1057 works too.

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Sun Tze is one of the founders of FocalEquity.com. After going through multiple transitions, Tze, Charlie Cheng and their new team are bringing new changes and features to the new FocalEquity.com in 2011. Tze is specialized in financial modeling and has a masters degree in Finance.