12/10/2009

The bears want to retest the $14.20 - $14.23 so i expect a bounce there. Wait to see what pattern develops at those levels before taking a position. I would think a small bounce then a sell off to break $14.20. I'll update again tonight. Check back often, good luck!

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Again, the technicals played out perfectly. This entire week highs and lows have been nailed! In the afternoon I said a bounce was possible at $14.20 - $14.23 on the XLF, the low of the day? $14.22!

WFC got hammered today and would go into the next week very bearish if it cannot close above $25.90. JPM moving pretty as it continues to bounce off of the $40.66 level and then pushed down again by its 200SMA (10 min.) Financials overall, very weak...

Tomorrow...I'm expecting another up move as the 60-min. XLF shows a bullish pattern in development. I added a new trendline on the XLF 10-min (in purple, connecting both of yesterday's lows) watch that to get tagged for a possible scalp. I'm not short yet, but I'll be looking to add some possibly tomorrow. View the possible scenarios I have drawn below.

XLF resistance: 10 min purple trendline, 50SMA (60 min), and $14.50 - $14.55

BAC came into solid support so I am expecting a bounce from it going into tomorrow. (Support comes from connecting the lows of 5/28/2009, 7/10/2009, 11/02/2009) Resistance levels on BAC are the 20SMA (60-min) and $15.55 - $15.60 are solid. I have a possible scenario mapped out below.

JPM resistance: $41.40 and the 50SMA (60-min)

Pic 1: XLF scenarios
Pic 2: XLF new 10-min trendline
Pic 3: JPM 60-min
Pic 4: BAC daily trenline
Pic 5: BAC scenario