Wednesday, November 12, 2008

TODAY'S ACTION

We are dangerously close to testing the Oct lows, and I'm not kidding. It'll be tomorrow and I expect some sort of bounce here. There's too much support for a no-support slice through. I also expect considerable volatility as the bulls and bears fight for control on an important day. We should also see some increased volume levels. Tomorrow will mark the 4th time we test. I would like to remind you that for anything, a 3rd or 4th retest is usually a bad sign, a breakdown typically follows not to long afterward, but in the words of Hank, "let's not speculate".

Especially pay attention to the diagonal downward trend in the 10-day charts for the SPX/COMP. They'll provide significant overhead resistance. As for support, there aren't anymore left besides the Oct lows. And yes, I am in cash until I see a sizable rally coming after a retest or a total, abysmal failure of the last support level.

In other news, I got invited to only one Wall St party. Usually, every firm is buzzing during this time to speculate on who's got the biggest and baddest party. Unfortunately, 8/9 out of 10 have completely canceled their parties. Duh, we all know why. I guess MS can send me a cool monkey pen this year instead of the gold one last year. Also in other news, I was given advice to seek out "SINBAD" girls - "Single Income, No Babies, And Desperate".
Interesting...


SPX 1-day

SPX 10-day

SPX 6-month

NASDAQ 1-day

NASDAQ 10-day

NASDAQ 6-month

Examples of FAILED tests:
Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!

5 comments:

Anonymous said...

John,

Where is the link to join UR site.

John C. Lee said...

hi,

What do you mean "join". You can subscribe via RSS, you can also "follow" the blog with a Blogger ID, both options on the left. You can also subscriber to the free newsletter on the green box.

Did you mean sanything else?

Bob said...

"This market has significantly priced in some bad news," said Arthur Hogan, calling it a "great sign" that the S&P recovered after falling below its Oct. 10 trading lows. "Historically, if you test a low within 45 days and close above it, it's very bullish."

from YAHOO headlines, agree??
thanks

John C. Lee said...

the intra-day recovery was impressive, but it's still a trading environment - short-term

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