Wednesday Nov 21 2012
We do believe a bottom of some significance occurred last Friday.But the bottoming process is not over yet. Recall that markets move in fractals, one large move consists of smaller moves in shorter time frames. The two hour chart demonstrates just that since Friday.
SPX Two Hour
A nice pop to the shortest moving average, amazing how that happens eh? We have less voume now that the MA has been encountered. And one can eyeball this concluding the two hour chart needs to do a lot more work to turn all these MAs to the upside. That is why I backed off yesterday with my warning to wait until next week.
We will have light volume today and Black Friday but those are seasonally up days. yesterday saw an 80 point Dow drop and recovery over two hours, again one has to place orders lower to get the bargains.
Crude oil has stalled at its daily 50 bar moving average. So, let's stay on the sidelines until next week. I suspect a pullback to test that last Friday low. That should occur going into the end of the month.
Anecdotal positive nugget for the week.
Despite the devastating effects of Hurricane Sandy, remaining tickets for the Rolling Stones Concert in New Jersey Dec 13 and 15 are
$350 a pop. You can get Satisfaction but at $350 a concert ticket.
Comments