Daily Directional Forecast:

Mohan's Market Force Daily Directional Forecast
by Mohan

September 22, 2009

Market Force: Neutral. After refusing to pullback on Monday, the market is once again acting very odd. Potential for another rally attempt towards the 1072 area with chance of stretch to Key resistance at 1075-77.00

Recap of Monday's Action:

Good morning and thank you for joining with us today.

Despite the numerous strong signals for a bearish pullback the market refused to break and hold under the 1054.00 pivot mentioned in Monday's briefing.

In the early trade it appeared we would get the break and stronger move lower but the artificial bullish support drill continued as usual.

Today begins the FOMC meeting with the interest rate announcement on Wednesday around 2:15 est.

Based on the trading action on Monday with the lack of downside follow through, I am concerned that we will continue to see large buy programs come in and prop up the market today and possibly tommorrow.

We are in a period of time where the markets are taking on a whole new dimension and we have to adapt.

Many long time market pundits are being left scratching their heads on both sides of the bias.

If you have been bearish then short positions have been punished yet if you have been a bull, you cannot help but wonder, where are the normal, healthy retrace pullbacks to refresh the bull?

I suggest we use extra caution today in taking any Intra Day Swing Trades. Tommorrow we will be standing aside from offering a Directional Forecast and IST setups.

Today's trading strategies are discussed below...

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