Tuesday, October 4, 2011

What will need to happen in the afternoon

Here's what I'm looking for to happen in the afternoon, IF the bulls are going to take control, at least on the short term.

Breadth will have to first get positive, and then trend higher
Positive volume will have to take the lead over down volume, which it's trying to do as we speak
The VIX will have to continue to trade lower
Price action will have to hold previous breakout levels

The bulls will have to get in gear for this to be anything more than a dead rat bounce. So far, all we are doing is printing a retracement in a strong down trend.

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