Weekend Market Comment For W/E 2/15/08

A fairly mellow option expiration Friday as it seemed most of the position squaring took place on Wednesday and Thursday.
It was a great day for trading however as we had about as textbook symmetrical day as you can get, lower early followed by higher later in the day.

The chart below makes some very interesting points about the intermediate term health of this market, so please take a look.

The Nasdaq remains the primary focus of the big boys and should prove to outpace most of the other broadly based indexes.
It also remains in an intermediate term position for higher prices, but probabilities tell us it might have to wait a couple of days before we continue higher.

Friday saw the market work lower to the lower corrective target and then begin moving higher.

This is a bullish development and also solidifies the low on Friday as a pivot point for either higher prices or lower prices. This level needs to hold fast if we are going to continue to work our way higher.

The next couple of days show a tendancy of being negative so we may simply flop around in here until we find our way out of the pattern induced negative slope. This should end on Thursday and from there we should see a sizeable rally begin.