Tuesday, November 20, 2007

Daily Equity Market Comment - 11/20/07

The market put in quite the performance today with multiple swings that produced some very trade able prices.

The low on the day was 1419.28 and the ultimate low target we had was 1420, so I will take this as the target being satisfied.

The wedge that is forming will also play a vital role for the next major move for the S&P 500.
With the downside target being satisfied and the bullish price pattern today, I would look for this wedge to be broken to the upside, with a minimum target of 1523 on the S&P 500 Cash.

Add some strong seasonal strength over the next 3 weeks and you have a serious recipe for a substantial intermediate term rally.

The probability model calls for a continuation of the rally, with a high odds on favorite for a very strong day. Being the day before Thanksgiving however will really make the market thin after 11:30 or 12:00 so there is some potential for more volatility.

I suspect my Day Trading day will be over by noon tomorrow as fills tend to get terrible as the market thins out.

So, we have some very high odds that a major intermediate term low was put into place today and the next major price move should be higher.

Continue to Buy On Weakness


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