This is really a weak tape again today.. the bullish hammer of yesterday was a fluke and no follow through today. The tape looks weak to me and 1250 now looks like it will be busted eventually possibly into July 2011.
This is bearish for the overall market for the longer term. Unless by some miracle the market can stage an end of day rally to close flat today, this is setting up for much more down in the weeks ahead.
I continue to remain on the BOT Short signal for the sp500 despite my cheerleading yesterday about the big hammer reversal. Remember, regardless of what I express in these postings, if I am on a BOT Short signal, then that is my preferred bias and committed signal REGARDLESS of what I am venting about in my postings in between.
The US Dollar continues to show strength and may catch a longer term bid. The administrations actions yesterday to try to pump the market with the crude oil release may now be seen as a total act of desperation as they see signs the economy wants to contract again..
Biotechs continue to hold strong and remain on all my watch lists. Individual biotech stocks are acting like we are at disney land. They simply do not care about the weak tape for now..
RPRX blasted higher back up into the middle of its swing trading range and may move back to the top of the range and hopefully for an upside breakout.
Also ONTY is turning into a POWERFUL momentum biotech and may be positioning itself for a new momentum entry in the week ahead if it can consolidate nicely in the current range. ONTY has a shot at getting into the teens. It is doing a parabolic type up move and as long as the tape consolidates nicely it can be traded as a MOMO stock with very tight stops.
The long term up trend line from March 2009 may be at risk of breaking down soon into July 2011 !!! Watch this closely during the next two weeks. I will have forthcoming charts on this month to month transition soon and what it will mean for the longer term picture.