The daily chart shows that the bulls still have control of both the channel as well as the indicators.  Every time we try to write the obituary, the buyers step in.  Dip buying is the name of the game.  It has been the game for months.

The hourly charts show the roller coaster ride today with the bulls taking the advantage.  It was tough to trade IF you were not playing the support resistance lines.  Bottom line - bulls in control here too.

The ratio chart was strong all day and served as our guiding light.  I need to make one point here - this chart NEVER signaled a sell because we did not get a 21/50 crossover.  Now we need some follow through.

The weekly chart recovered and is now back in the bull camp.

The Wilshire chart looks much better and the P&F added another X.

I had a couple of trades today.  I added 10% of QLD at the open (yes, I broke the early trading rule) and another 10% on the recovery.  I am still just experimenting with QLD and trying to get a feel for the movement.  Using the Qs for guidance.  It looked like some kind of sell program kicked in today but, in looking at the total volume, it must have been some small fry hedge funds.  I do not see the footprints of a Fidelity or Vanguard in the volume numbers.  The strong recovery also suggests it was some small guys.  So, now we have a firm higher low - is a higher high to follow?  If you are going to play the TA game and, given the present charts and indicators, you have to call it up.  We will see - but I’m following the ball.  BTW - this is a risky trade until we break 2580.

Charts link below.

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2071209 

Have a good evening,

The Old Fool