AI
Wednesday, January 23, 2008 8:04:25 PM
Big Bang Day follow up with Bigger Reversal Day
After the big reversal day with the Fed big bang 20 year history breaking action,
http://trend-signals.blogspot.com/2008/01/big-bang-day.html
we now have another bigger reversal day with greater power.
Today, we have intraday range of:
DOW 631.86 points (5.15%)
Nasdaq 117.59 (5.08%)
SPX 69.04 (5.16%)
Qs 2.54 (5.77%)
QID 6.35 (12.60%)
I noted lower VIX reading right after 1 pm LOD price action, which was the indeed LOD, and markets rallied signaling the retest of the Lows, so far.
With the additional news that the Fed could cut another 0.75 % on the Fed day, Jan 30, market rallied making the stronger reversal day.
After my analysis on market breadth, I can conclude that markets are very oversold at the support level which I noted for this market correction to SPX 1275 +/- level.
We have distressed sectors rallies such as XHB up 12.40% today and up 34.69% from 52 wk low. Also, COH reported a good earning today, XLY up 8.31% today. These two sectors are most distressed sectors which are now signaling a recovery.
After seeing my projected market correction level of SPX 1250 - 1275 +/- and based on other market analysis indicates that we have seen the worst of market condition and will see market building bottoms at this level to trade for the next few months, if not, close to lows of the year.
We have MSFT earning report tomorrow, therefore, with the higher volatility, we have higher risk/reward in the current market condition. Furthermore, SPX 1600 for the 2008 target is not out of question as I think that it could be accomplished.
After the big reversal day with the Fed big bang 20 year history breaking action,
http://trend-signals.blogspot.com/2008/01/big-bang-day.html
we now have another bigger reversal day with greater power.
Today, we have intraday range of:
DOW 631.86 points (5.15%)
Nasdaq 117.59 (5.08%)
SPX 69.04 (5.16%)
Qs 2.54 (5.77%)
QID 6.35 (12.60%)
I noted lower VIX reading right after 1 pm LOD price action, which was the indeed LOD, and markets rallied signaling the retest of the Lows, so far.
With the additional news that the Fed could cut another 0.75 % on the Fed day, Jan 30, market rallied making the stronger reversal day.
After my analysis on market breadth, I can conclude that markets are very oversold at the support level which I noted for this market correction to SPX 1275 +/- level.
We have distressed sectors rallies such as XHB up 12.40% today and up 34.69% from 52 wk low. Also, COH reported a good earning today, XLY up 8.31% today. These two sectors are most distressed sectors which are now signaling a recovery.
After seeing my projected market correction level of SPX 1250 - 1275 +/- and based on other market analysis indicates that we have seen the worst of market condition and will see market building bottoms at this level to trade for the next few months, if not, close to lows of the year.
We have MSFT earning report tomorrow, therefore, with the higher volatility, we have higher risk/reward in the current market condition. Furthermore, SPX 1600 for the 2008 target is not out of question as I think that it could be accomplished.
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