Trend Break and Backtest 10-06-09

This a beautiful sight to a bear.

Trend break and a Back Test to the bottom of the lower trend line.

2nd chart is the probable price action
we could see over the next few days.

Am action is key ... All indicators are mixed to flat so we will follow the opening mojo....

This could also be a Bull Flag....so if we get a break to the up side st the open then we could see a big move . ...play safe.

Pre Market TAO Fri 08-21-09

SPX trade 30 min chart range for Friday Options Expiration Day. Price is at top of resistance line and Pattern looks like a Bull Flag but the indicators are suggesting another leg down then up. The market is clearly in a up bias the bulls are aggressively buying the dips. Rsi and Stokcastic are over bought the market looks like it wants to turn down but the lower chart of the NYSE Tick is showing strong buying with very few net sell candles below - 500 for the last month. This is a very nervous place to short if the price is rejected at Spx 1017 area price should move down into the shaded red zone . Be careful if you do short this market and use small size. I would be more inclined to wait for price to move down to 987 area and touch the green zone on the Tick chart in the AM session then go long.
The big money is buying any weakness so I expect a shallow retracement. Very Tough market to trade could get Whippy. Many traders are just stepping aside until next week.