POSSIBLE SUCKER'S RALLY

As the dollar fell today, many commodity stocks started to rally. I heard many "experts" say that the commodity stocks were now rebounding and should now be considered a "buy". A closer look at the chart patterns show bearish ABC patterns forming on a lot of these stocks. These bearish ABC patterns are also showing up in the major averages. To me it looks like they are trying to rally back up to the previous support level they just broke through. Once the market hits that resistance, it could make another move down. What I would look for tomorrow is either an early morning rally that fails, or a sharp rally after the FED announces their decision on interest rates (which should occur sometime in the early afternoon). This rally (if it does occur) would complete a bearish ABC pattern that could lead to another move lower in the market. There is also a chance we could just sell off at the market open, but usually we get a little sucker's rally when the FED makes an announcement especially during a downtrending market. The market sold off a bit at the close which is also a pattern it has followed over the last several trading days. The bearish patterns I like are still the DIA and SPY. I also like NFLX which seems to be completing a larger bearish ABC pattern. There are a lot of possible bullish ABC patterns showing up (WYNN, BYD, JPM, AXP, COF, WFC, PNC, and ZION), but they would need some confirmation before I would consider them as trades. When the market moves, it drags about 80% to 90% of the individual stocks with it. If the market does sell off a bit more, it would likely pull a lot of stocks with it...including some possible bullish candidates. Keep a watchlist of uptrending stocks so that if the market reverses this downtrend, you will be ready to capitalize on a new upward move.