Posted by MC on Dec 7, 2008
We are at resistance on most everything. My hunch or bias is that this resistance will be broken, shock the hell out of many shorts and a true bear rally will begin. The bailout is likely to be the catalyst IMO, and I think the market could react bullish to a yes or no vote just the same. The market is imbalanced here and needs a correction, any catalyst will do. How else could the market rally on horrible job numbers? The MA’s are likely to be tested is my guess…I did up the below chart awhile ago showing where I thought we could end up. Dow at 1st 9000ish and then 10,000ish if the 9’s break. I got long the qqqq as an aggressive trade with low $. The safer bet is to let the breakout happen and try and buy any pullback, or to sell a rejection at the resistance with the trend. So if you’re not aggressive or you are playing with big $…do as I preach, not as I do. 
Here is IYG…this matches how most plays are set up at this point IMO. I like the weekly charts at this stage as the next move will probably be a longer lasting one and less noise is best IMO.
