Daily Directional Forecast:

Mohan's Market Force Daily Directional Forecast
by Mohan

October 15, 2009

Market Force: Neutral/Bearish. Continue to use caution on these new highs. Prices holding under 1088.00 can start a short term decline.

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Recap of Wednesday's Action:

Good morning and welcome to Thursday's trading action.

Well, they are up to their old tricks again jamming the market higher on extremely bearish Market Force, chart and algorithm readings.

Intel and other corporate earnings gave the market a reason to rally on Wednesday with most of the session staying fairly choppy. Coming into the final hour however, they decided to give em a boost pushing the Dow up over the good ol 10,000.

I recall many years ago when the market first pushed over 10,000 and they were popping champaign corks and everything on the floor of the NYSE and on CNBC. It was really goofy. We are getting a similar replay on Wednesday.

However, caution is urged on these new highs for this period as we want to see if the momentum can continue. Trade holding steady under 1088 could be ready to start pulling back where we will want to watch for the true test...at the support levels.