Friday, 11-23-07

Friday the SnP opens at the most significant price level in decades. Notice the close Wednesday sits right on the lower band? The August 16th low close was 1411.27 the 377 day ma is at 1415.89, the .786 retrace from 1370 to 1576 is at 1414 making this 1415 to 1411 zone the dividing line between bull and bear trend. Since Friday is a short holiday trading day Monday will be the most significant day to find support in this zone or bust below it and continue on down to 1350-1330 areas.

Wednesday, 11-21-07

The 1419 level was achieved Tuesday and a bounce into the close occurred off that support. The week has a down bias and if 1414 is traded below this week the door is open for the 2.618 target at 1356.

The charts moving average area will be solid resistance this week.

Tuesday, 11-20-07

The SnP did make a lower low Monday increasing downside momentum. Today 1419 to 1414 is the target support and 1450 the resistance

Monday, 11-19-07

The 60 minute chart has traded sideways for seven hours. The stochastic is advancing as price trades sideways while the 120 minute stochastic is moving sideways. Odds are the 1463 to 1465 ma area will not be traded above and a lower low will occur.

Friday, 11-16-07

The weekly projected high at 1487 was the top for the up cycle. Looking for continued bounce off yesterday 1443 low to 1460 today then on down toward at least 1415 with 1350s as a 2.618 extension. All we need to see now is take out the 11-12-07 low and I have a confirmed technical indication the rally from 2006 topped at the .786 extension 1552. Next week has a down bias until day after Thanksgiving.

Thursday, 11-15-07

Trading Wednesday turned into a bearish pattern day as breadth was negative enough to add to downside momentum. The weekly bias is up into this Friday however the high could be in Wednesday as the weekly down cycle projected high at 1487 was achieved. The last 30-minutes tanked the market back down to the 27 hour moving average. From here we just simply see which way it goes Thursday.

Wednesday, 11-14-07

The bottom did occur at 1439 area and a rocket ride of short covering has rallied to the 120 min chart moving average and the 60 min chart upper band. Today will have a down bias to the 60-min chart moving average. Todays high and low will be solid clues to where the market goes after options expiration games are over. Down to 1415 or higher to 1520?