Jan 19, 2005

After the Close

The thought rattling around my head right now is that tomorrow will be the first day since October that it will be tough to buy them. It also seems likely that we will manage to put in a lower low for the S&P while the McClellan Oscillator (now available in the links to the right) shows a positive divergence. Not reasons to jump in and buy (or to ignore stops) but it might make the next bounce seem pretty attractive.

EBAY is smashing the nearby uptrend I had shown along with its 200 day moving average. I would put next support around 83-84 with better support coming in at 75.

The 200 DMA in the VXO is at 15 which might make a good spot for a reversal on the first touch. Trading above that would make a nasty reverse-head-and-shoulders (Nov 19th marks the first bar of the left shoulder).

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