Friday, 10-26-07

First test on the first day passed the test for a typical wave “4”. Todays projected lows expanded lower from yesterdays lows of 1509/1503 to 507/1496. The daily projected highs are at 1519/1503 for Friday. Since Friday is a four day cycle day three do not look for much volatility. As long as the SnP cash is trading below 1526 a sideways trading range continues and if it continues until the FOMC then expect a drop to the 1470s.