Weekend Outlook - 22Nov08
I will update this post throughout the weekend with anything interesting I find. I will try this method of posting the Weekend Outlook on a regular basis.
My initial assessment is that the market looks to be in the last leg of this current correction.
The VLE price is at the 8×1 Gann angle. In a normal market, I would expect this angle to provide support and a place for a bounce. A bounce from here would find resistance at the 2×1 angle which has been resistance previously. Still, the 1×4 ascending angle could be a magnet to price. This is no time to be aggressive.
Dynamic Chart
The DJIA has not broken the 2002 lows and the move from 2007 shows a slight positive characteristic. The angle from the 2007 high to the October 10th cycle turn shows price above that angle. While price is lower than on October 10th, the slope of the move is less than the slope of the full move down.
Dynamic Chart
There have been more put buyers than call buyers over the past 60 days. This has been bullish in the past.
New lows on the Nasdaq (and NYSE) did not except the number made in early October. So far, this is a bullish divergence.
Charts courtesy of Stockcharts.com
Recap of recent posts:
- Expiration Day Reversal
- Dow, Nasdaq, VLE, and SPXEW Above 2002 Lows
- Money Flowing from Stocks to Bonds
- Long Term A-B-C Correction?
- Warren Buffett’s Pucker Factor
- Bonds Show No Interest in the Inflation Argument
- Accumulation Day Reversal
- Market Needs Leaders to Bottom
- Low Volume Day Waiting for Follow Through
- Inflation-Deflation Update
- Weekend Outlook - 16Nov08
- SP500 Index Time Cycles
- Oil and Gold
- Reading the Market is Not Predicting the Market
- Value Line Arithmetic Gann Fans and Angles
- Market Remains Trendless