Sunday, September 19, 2010

Full Moon reversal later this week?

Last week most asset classes (except for bonds) went higher into quad expiration as I planned. We are on the verge of something big. Will it be a rip roaring rally higher or will it be a "fake out" again like in June and August? I think we are going to see 11,000 or 10,000 very soon. We may need to consolidate last weeks gains this week. The Dow Jones has an open gap from the August high's at 10700. I'm looking for that to get filled this week. Then we have the Harvest Full Moon on Thursday. This 3 week rally started on the Full Moon in August. Will it end on the Full Moon in September? This week, look for 1st resistance at 10700 then at 11000 (Mr2 pivot). 1st support is at 10500 then the open gaps at 10300 and 10000. Stochastics are overbought so be careful this week.