Tuesday, October 19, 2010

Chop Until FOMC Meeting

Today's low and yesterday's high will define the approximate top and bottom of the chop range that I see till November 3.  Yesterday's high was around 1082, and today's low is yet to be determined.  This chop will be very tradeable for the next 2 weeks, so that will be how will approach it. 

After the chop is over, I expect us to break down to the downside, although I don't think it will be a new downtrend.  It should just be a pull back, but a big one that will scare people.  We could go down to around 1100-1110 on that pullback.  But that is just something I am guessing way out there in the future.  For right now, we should take advantage of this chop to pick up a few dimes before the bulldozer rolls in. 

1 comment:

Anonymous said...

not sure about that. Large moves precede large moves.