On June 29th, 2010 11:33am Eastern Time

Update

In last nights video, Chief Market Strategist Gareth Soloway discussed how the last candle of the day broke below the key triangular consolidation that had lasted for multiple days. While not confirmed, it was of extreme interest.  Today, we see the results as the markets freaked out over China fears and Europe fears.  Massive selling started overnight, the market gapping below (ITMS River Theory) $107.50 and dropping within an hour to the next mega support level given by InTheMoneyStocks, $104.50.  After crossing this briefly (wiping out the weak handed stops), the market ripped higher again, bouncing almost a dollar to this point.  At this stage the market has been weakened in a major way.  Watch the $104.50 level.  Should this break and confirm, the target on the SPY is $99.50 - $100.00.  The W-V pattern on the daily has been negated and after being in a neutral to small upside bias, as mentioned in the video, it is now a neutral bias.  Support is $104.50 and resistance is now $107.50.

Key Positions Update

CVX has dropped but not that much considering the massive crushing in the markets. A stop of $67.45 (approx 5-6%) will be used.
LOW is down just $.34 on the day, just hovering slightly below the entry price. Standard 10% stop on this play
CNAM has been crushed on the back of the Chinese fear from last night.  An institution is dumping blocks of 25-50k.  If this closes below $3.25, it will be sold.