When I first mentioned (weeks ago) that many chart patterns were starting to look like they were forming potential Head & Shoulders patterns - I hadn't seen them mentioned by anyone. I was really feeling good about getting short. Fast forward to a week ago, and you can not escape EVERYONE talking about these H&S setups. With so many people watching the same thing, can shorting the indexes possibly work out? For now, I think not, and am mostly long the market again (albeit I go long and short on a daily trading basis).
Regardless of what I think today, I can not help but feel like we are currently in 'no-mans land', with no clear market direction in my sights. So what am I watching as my market tell? Not Goldman Sachs earnings, not even Intels earnings (which I believe will be taken positively). I am watching Oil as my market tell. If Oil closes difinatively under $60, I believe we will have more downside in the market, and will likely get heavily short again. Should oil close over $62 I think the bulls will be back in control.