No confirmation

7/2/08

Is this week full of volatility? This morning US stock market held in green zone even with worst ADP job data report of biggest loss in 6 years. Then the oil future is hitting wire with record close high that kill all the reversal momentum. All Major stock indexes are closed in lows of the day. Also, the follow-through confirmation is failed after hammer candlestick pattern for Dow and S&P. I had mentioned yesterday that I am not so convinced yet because the VIX was not closed(touched) in Fear Zone(+30).This is very very bearish now. As I said earlier that tomorrow is key day and the market is going to open half day due to the holiday of July 4th on Friday. Well, if tomorrow the market open down more than 100+ or 200+ points with VIX strike into 30+ zone, it would be a good aggressive entry points and the market would probably make the bottom(Not long term bottom-at least last for years). Otherwise, most likely all major indexes would posted a bad down day to celebrate our July 4th. There is one more case if market has perform wild wild west that it keep drops down from teens to over 300 points and recover almost breakeven at 1:00pm eastern market closed time with very heavy volume. Then it would be a good bottoming formation(another hammer, or high wave Doji star). Well, fasten the seat belt as the patriot roller coaster is about to riding down then....Let the market tells the story.