AI
Saturday, November 24, 2007 1:28:05 PM
Market breath is very negative closing near multi-year low. Daily price action is oversold setting up for a bounce. Markets are at major supports; therefore, need to be cautious if breaks the support. Daily price actions show 5 wave down in mirror price actions as it retraced SPX 78.6% of 8/16/07 - 10/11/07 rally. LT support near at 20mma with SPX 1430 +/- as well as LT TL supports which I noted before. As daily price actions are very oversold and breadth shows multi-year low, with no bad news, markets will likely rally. While some are looking for 9m low in Nov 2007 with cycle low in Dec 2007, it is quite apparent that markets are ready to bounce, at least, as 18m cycle is at its peak and 4yr cycle is rising. However, seeing extremely bad market breadth, I am not so optimistic until I see improving market price actions
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