Stocks: How Frustrating Is This Market?

It seems like the market is doing a great job of chopping everyone up. If you were long last week, you got taken out of your longs when the market broke below the March 5th low. Now it seems like some shorts are being squeezed.

I'm still short SPY, QQQQ and DIA from the open on March 9th. I'm showing a small profit but I've given back way too much money. I feel this is still a pullback and the market will trend lower. If the market were to continue moving higher for more than 6 days and trade above the upper fib retracement level, I'd have to jump ship and throw in the towel. I've been saying that most pullbacks range from 3 to 5 days and this is day number 4. The 50% level should be strong resistance because it coincides with the high from 2 weeks ago.

I'm not happy about going into the fed meeting with not much of a cushion, but I'm going to stay short. My stops are right above the upper fib retracement level.

If you look at the above chart of the SPY and Yen, you will see that both markets are in the fib retracement window. Actually the Yen has bounced off the one third level and is moving higher. I view this as a typical pullback as long as these levels hold in both markets.

The one thing I didn't like about today is that the Yen was up, yet our market was up too. Recently whenever the Japanese yen moved higher, our stock market moved lower. So I'm not thrilled to see stocks up today with the yen but there are other reasons why I am bearish so I'll sit tight with my shorts and pray!!!!!