Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

ETF Technical Market Analysis 1-25-2010

|Includes: iShares Russell 2000 ETF (IWM), QQQ, SCO, SPY

Markets rebounded today but finished off their highs.  Our SCO position lost 2.5% today but still remained above our stop.  Our stop was raised today to $15.16 (see chart).  The candlestick pattern left by todays action in SCO as well as in the S&P ETF SPY are called Harami.  A Hammer was put in by the Russell 2000 ETF IWM and the Powershares ETF QQQQ placed in a spinning top on 38.2% fibonacci resistance.  While all these patterns need confirmation they do set up for a reversal - perhaps we will get follow through tomorrow (or not).  Whichever way it breaks will setup the short term direction of the market.

Russell 2000 ETF IWM possible hammer candlestick pattern

SCO inverse leveraged crude oil etf possible harami candlestick pattern
S&P ETF SPY possible harami candlestick pattern
Candlestick pattern spinning top on fibonacci 38.2 on Powershares ETF QQQQ

Sea Lion Capital Management LLC

Disclosure: Long SCO