Yesterdays bearishness maybe a fakeout

I think yesterday’s bearish market action may have been a fakeout.  I am referring to 6/21/2012 market action.  This may have been a fakeout similar to the one that occurred on 6/11/2012 where it looked like a huge reversal was taking place.

One hint that 6/21/2012 may have been a fakeout was the low volume and the high ARMS reading indicating mass oversold with only one days action.

Next week we have end of month and end of quarter window dressing.  This should keep the market afloat next week.

I said in my previous post that we needed to hold 1325 in the sp500 today which we did.  This is the valid retest level of the short neckline of a head and shoulders inverse pattern.  So as long as we can hold 1325 next week, then my longer term bullish scenario seems to still have good odds of working…

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