In the stock market right now we have:
1. Contracting Ranges
2. Declining volume on this current up move
3. A test of a very important high volume area
4. A very weak russell 2000
All these point to a possible high volume range expansion to the downside... HOWEVER... if we start breaking above to the 1080's, we might be in the clear until 1128 area. I at this point would be positioning short for a potential HUGE move down... As you can see on this chart, volume is declining, and we are reaching and important congestion area, right after we filled a gap (stops). Around these areas could be a good area to short some indices.
Thanks and make a GREAT day!
Julian Marchese
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