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Hello John Boggio and Earl Adamy,
And thanks to each of ou for your market outlook comments
in this post. From my perspecitve,..I am cautiously
optimistic into next week for the following reasons:
1. Today's selling was linked to concerns over the ECI number
due tomorrow. A bad number should be in the market to a degree.
Bloomberg notes:
New York: U.S. stocks fell on concern reports tomorrow will
show fast enough economic growth to prompt the Federal Reserve
to begin a series of interest-rate increases when policy-makers
meet next week.
2. Seasonally strong money flow begins tomorrow and lasts
through next week. This is end of month pension plan money,..etc.
3. Although we well could continue lower,...short term indicators
reached very oversold levels Thursday,...levels where recoveries have
began in the past. We tested the 1388 key support level and bounced.
4. I am viewing the decline as having comprising 5 waves down with
today's selloff completing the 5th wave down.
5. The recovery in Bonds,..and action in Utilities, etc. should offer
near term support for equities. Also fewer NYSE New Lows today
than yesterday, despite lower market etc.
Just my opinion,..but I am cautiously optimistic that support will hold
here,...and we'll have a failing rally into the 02-08 to 02-16 timeframe.
Bigger picture,..any rally into that timeframe should be a selling
opportunity ahead of another decline into the 02-23 key timeframe.
Thanks again for the market outlook notes and have a good day.
Regards, Jim Pilliod jpilleafe@xxxxxxx
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