Strange..weird market -- retest of Flash crash low before new highs

Very strange markets.. GS and Google down, AAPL and AMZN were up but have given up most of those gains in an hour. VIX went down quickly but has rebounded, still down for the day. But, stocks in general have been quite resistant yesterday and today. ES 1168/70 and ES 1130/33 are the important S/R levels I am looking at, with 1156/58 as minor resistance. If it can't finish near the high of day today, above 1158, then there is the high probability of retesting the Flash Crash lows. Daily charts are still bearish, and now the hourly charts are turning bearish after a rebound yesterday and early today. Will post a few charts later

Edited by dTraderB, 18 May 2010 - 09:48 AM.

Not only have they busted the flash crash lows but V and MA continue to tell us the market will breakdown the February lows across the board. They are in full bear mode.

Technically, it was a very weak gap up anyway with little volume support (1.30 Nasdaq TRIN). And, that went immediately into the overbought territory. You can see right from the get go everyone’s shorting that gap. And, the current market volatility simply overshot to the downside. Subsequently, the reversion took place, as always, and we’re right back to yesterday’s range. Conspiratorially, “THEY” were setting things up so that “THEY” could come in and start buying. Strange? Depending on which theory… Nonetheless, BTD (Buy The Dips) is still the strategy, for yours truly anyway.