This market couldn’t get any more frustrating than it did today. The whipsaw action is awful for swing-trading and realizing gain is becoming rather difficult. That physics law that states, “For every action, there is an equal and opposite reaction” is a pile of crap. We rally last week when Bernanke says the discount rate is going to be raised, and then we rally again when he says interest rates in the foreseeable future should remain the same. How the market can find this news on both sides of the spectrum worthy of a rally is really beyond me.

Nonetheless, despite all the attempts by the bulls to recover off of this month’s lows, they are still not out of woods yet. On the S&P, in particular, there is some nasty overhead resistance looming, and hopefully, finds it to be more than they can chew on. It takes every fiber of my being to not throw in the towel and go long this market – more than likely if I did that, out of frustration, the market would just simply drop through the floor. Instead, as long as my trading system tells me to be bearish, that is what I am going to continue doing.

I also picked up a new position today in Amazon.com (AMZN) and closed out my position in Gap (GPS) for a loss, due to earnings coming out tomorrow.

With that said, let’s take a look at the S&P and Nasdaq Charts.

 

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