Sideways Channeling

Today's ugly action in the market was brought to you courtesy of Kim "Mentally" Ill Sung, the loose cannon of North Korea. And with the 142 point drop in the Dow, I now have to take down the green arrow and admit that I have no idea where this market is going. I took down the rising RTC channel I thought we had yesterday. The low Pearson's coefficient simply did not bear it out.

The best I can say at this point is that there is no trend right now, either up or down. We are simply channeling, with strong support at the psychologically important 11,000 level and resistance at 11,200. On that basis alone, and since the futures have been rising since the close, and because the day before Thanksgiving is traditionally good, I'll call tomorrow higher but I'm not overly confident about it.

We're in an environment now where bad news is bad news and good news is also bad news. Until the market can break one way or the other outside the range established over the last seven sessions, there's not really much one can do, at least on a swing trading basis. Once again, I made no trades today. I'm just waiting for this mess to resolve one way or the other.