Sorry for lack of posts lately. The market basically moved nowhere since my last post which is boring and not encouraging. The only thing moving in this market are the small financial junkies, like C, FRE, FNM, CIT, AIG etc. Those are good for day trade only and too volatile to be considered swing trading.
So are we going up or down from here? I really have no idea. The bulls could say we broke out and now we are just resting. Even China's over 6% drop could not bring us down today. The bulls reversed the earlier weakness nicely. In the mean time, the bears could argue that the recent breakout was sluggish and we lost China, the biggest economic driver. The breaking out stocks are getting leaner and leaner.
Both sides are reasonable. If I have to choose a side, I think the bears have a chance, though the bears have got killed many times this year.