Daily Equity Market Comment - 11/8/07

The probability model hit it on the nose yet again with the early weakness and the reversal to the upside. The only thing it missed on was that the close was supposed to be unchanged to mildly positive, but for our purposes it came through like a champ.

The Day Trading Account captured 21 points today and you really can chalk much of that up to following the probability study. It is always so much easier when you have some type of guide post as the day develops.

It looks to me like today produced a selling climax on an intermediate term basis. This could be seen very clearly on the one minute chart as you could literally feel the panic in the selling.

The probability model calls for a shift from selling strength to buying weakness on an intermediate term basis only. It also calls for the market to continue its rally on Friday with a flat to slightly higher open.

The question from here is whether or not this is the end of the intermediate term decline or is there more to come. I would side with the more to come, but as always, let the market tell its story and we will see if we can decipher the meaning.