I still don’t like what I am seeing, but that doesn’t matter, does it? The general market sentiments are pretty bullish since the Bear Stearns bail out, and FED lowered another quarter percentage point AGAIN. TOO MUCH TOO LATE?  Nevertheless, I am still a little bit short biased, as I still don’t think recession worries, inflation FACTS, financial crisis, and housing slumps are behind us, any of those things could hunt the market down, not mention the combined impact. As I mentioned in my previous post, there are some major resistance and supports still wait to be tested and retested. Let’s look them again, and see you in MAY.

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1. SPY: Same old resistance and support, and bearish divergence still appears on CCI, but look at the price patterns, there are higher highs and high lows. If the price is the king, then I guess you can ignore the CCI, but the resistance at 140 is not really broken yet, and the 50% Fibonacci Retracement at 140.71 also acted as resistance today. With the sell off as the end of trading day, I am still keep my bearish sentiment over spy, until 140 could act as support and been tested. BUT you never know right? Sometimes you hate that you have a bias towards the market, well, that’s the art of trading isn’t it. Uncertainty should be something you enjoy, rather than scare.

2. QQQQ: Qs is relatively stronger than other major ETFs, but I am not sure whether it will sustain, the resistance is still need to be tested, supports too, not sure which one first, but I ‘feel’ the pullback is coming. Watch out for 48, 46.40, and 46 levels. Make you own decision, price is the king, only when you act objectively.

3. XLF: Same as spy, the CCI shows bearish divergence, and price is hesitating on the resistance at 27.17, seems like a pull back is coming, but there is possibility for break out. I am holding steadily, with a little short biased, I won’t rush in for longs (mid to long term swing and investment trades).

Tomorrow and this week is still critical, as there are some economic data coming, you will see more clarity slowly, or suddenly. Keep your cool, and patience, they are important too, especially with the current market condition.

Good Luck & Happy Trading :)