Wednesday, November 2, 2011

11-03-2011 outlook

Market opened up and held green all day.  I had expected  a dip red at least some time during the day.  Still today looked like part of a bottoming process (along with yesterday).  These processes take 2-3 days usually to play out.  So we probably have seen the bottom near term.  If this process extends into a third day then it should test yesterday's low.

It looks like tomorrow should be up.  Greece seems determined to go into bankruptcy and the market didn't care.  The Super Committee seemed dead locked and the market didn't care.  Benny downgraded the Fed's outlook and the market didn't care.  Seems like the actions of a market at a bottom - not one headed down.

Most of the swing cycles should be turning up.  The 34TD cycle remains down. The 20 week (Wall) cycle should also have turned down in October.    This should limit upside potential but will not stop an upturn if indeed the shorter cycles are up,

Here is the SPX swing cycles:

GL traders.  Do your own analysis - be careful.
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2 comments:

  1. DoctraderNovember 3, 2011 at 6:15 AM

    Phil Davis is bullish today.
    Keystone gave various parameters to watch, but there are more positive ones in the Bull Camp vs the Bear Camp.

    It seems to me that the PTB have no choice but to "fix Greece" and pump the markets higher. Especially going into Holidays, they will use the "Wealth Effect" to stimulate retail buying.

    I am hoping for a dip today to get long.

    ReplyDelete
  2. InletNovember 3, 2011 at 6:48 PM

    Doctrader - my guess is we get some pull back for 2.8 days starting mid day Friday. Seems reasonable people start taking money off the table before the weekend?

    ReplyDelete

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