Is the hell about to break loose?

Well, the monthly, weekly and daily charts favor such trending scenario, especially for SP500 and DOW. There is little doubt that after the 3.5 month of consolidation, the market is once again in the bottom-searching mode.

This coming week is crucial for bulls: if SP500 fails to close above 750 by the end of the week, it will be extremely hard from the TA point of view that the market can halt another precipitous leg down. The scary thing is that if you look at the SP500 20 year monthly chart, there are not much meaningful support until the 420-480 area. There is a little bit of support between 600-660, which could serve as an initial target for the first pause. On the other hand, all major indicies may reach a rare multi-time frame oversold (monthly, weekly, daily) conditions in next 2-4 weeks, depending on the speed of dropping, and it seems worthwhile to position for an oversold rebound some point during the mid/late March. However, at this stage, I am unsure how long the March bottom could hold.

One theme that is becoming very clear lately is that while we all expect more bad macro-economical news, the actual news have been overall worse than even the most gloomy estimates, and I suspect that this Friday's Feb employment report is no exception. The bottom line is that as long as the global economy continues to deteriorate at a faster-than-expected rate, hoping a sustainable bottom in the stock markets is nothing more than a pipe dream.

Speaking of this Friday's Feb employment, my gut feeling is that if it comes in with less than 700k job loss and below 8% unemployment rate, the market may have a relief rally IF it goes down hard in the early part of the week. We shall see.

Given the current TA picture, I will once again try to avoid initiating any long positions that are meant for mid term (1-8 weeks) or long term (1-12 months) holding, in other words, I will once again focus on DT instead. However, I might consider some short term (1-10 days) long setups when the risk/reward ratios become very attractive.

1. AAPL: ST-L2=79-85, CS just below 80, IDS just below 78, IT=90.

2. AEM: MT-S1=32-35, CS just above 36, IT=26

3. AMLN: MT-L2=6-7.5, CS just below 6, IT=12

4. AXE: MT-L2=26-28.2, CS just below 26, IT=33

5. BIDU: MT-L2=130-141, CS just below 130, IT=165/180

6. FCX: MT-L2=26-28.5, CS just below 26, IT=37/40

7. FSLR: MT-S1=110-125, CS just above 125 with a bullish candle, IT around 95.

8. GS: MT/ST-L1=80-85, CS just below 80, IDS below 78, IT=93, OR when it closes above 93 with a bullish candle, IT=98/100, stop just below 90.

9. MA: MT-L1=140-147, CS just below 140, IT=170/180; DT-L2 if it spikes towards 150, stop just below, IT=160/165.

10. POT: MT-L2=76-80, CS just below 77, IDS below 76, IT=86/95

11. SNDA: MT-ST-L1=28-31.5, stop just below 28, IT=37/40

12. SQNM: LT-L1=10-12.5, stop just below 10, IT=18/20

13. USO: ST-L2=23-25.2, stop just below 23, IT=28/30

I know, I know, there are quite a few MT or LT long setups here despite what I said earlier, I don't know, the charts are making me calling them.