Market Update 12/09/09

The market continues to refuse a real break down. The Daily SP-500 chart(on left) once again held the lower regression channel trend line and the 4th attempt to smack thru the 1085 area.
Because of negative breadth divergences (see previous post) that remain intact I remain committed to my SPY puts with my stop pegged to $SPX 1101.94.
The 45 Minute chart of $SPX shows the frustration of staying long or short for more then a day or two for the past few weeks. In that time frame we are making a second attempt to get thru a resistance level that previously acted as support. This market is building up energy for a large directional move. The question is which way. For now and the reasons discussed in the last few posts I am positioned for a down move with a stop that may frustrate but can’t hurt me.

For ES futures traders, the March ESH10 contract becomes the front month on Thursday (12/10/09).



Good Trading

KW