S&P 500 Nov 05 to Nov 09 Outlook

By News Robot

Lawrence’s Comment

Recap
Similar to Dow, with stronger push towards the upside target Y+1. Essentially tagged the target and fell off a cliff. Closed the week below midpoint.

Outlook
Not as weak as Dow. Inside week with Y-0 near B-0. Breakout mode in play.

We may get both extremes (B+1 and B-1) if first extreme is rejected again.

Once one of them is cleared do not counter the move until after 100% expansion is completed. That means I am looking for B-3 or B+3 within coming 2 weeks.

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Comments
  • geosing November 3, 2012 at 7:13 pm

    With NQ & ES in BreakOut mode, I am wondering if the Dow is indicating the direction of the breakout, being the weakest of the three. Any opinions or research data on this? The Dow is the narrowest index and probably the easiest to manipulate to paint pictures.

    • Lawrence Chan November 4, 2012 at 1:39 pm

      The trouble is that in normal years we are getting (very) close to the window for the start of a year end rally. Remember last year I wrote about the end of the Christmas rally and how accurate it was? The pre-conditions is different this year, as the indices are getting oversold on serial basis (short term day-to-day activities), the year end rally may kick start early. When I see money flowing into the stocks for a few days, I will be able to confirm by then.

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