Look: I am eager to learn stuff I don't know--which requires actively courting and posting smart disagreement.

But as you will understand, I don't like to post things that mischaracterize and are aimed to mislead.

-- Brad Delong

Copyright Notice

Everything that appears on this blog is the copyrighted property of somebody. Often, but not always, that somebody is me. For things that are not mine, I either have obtained permission, or claim fair use. Feel free to quote me, but attribute, please. My photos and poetry are dear to my heart, and may not be used without permission. Ditto, my other intellectual property, such as charts and graphs. I'm probably willing to share. Let's talk. Violators will be damned for all eternity to the circle of hell populated by Rosanne Barr, Mrs Miller [look her up], and trombonists who are unable play in tune. You cannot possibly imagine the agony. If you have a question, email me: jazzbumpa@gmail.com. I'll answer when I feel like it. Cheers!

Friday, October 7, 2011

Friday Market Action

The SP500 broke out of a  trading channel that contained it quite neatly from Wednesday until this morning.  The peak this morning was at 1171.40, within a fraction of the .618 retracement of the drop from 8/31 at 1171.14.   This occurred against steeply dropping momentum - as you would expect from a day and a half of sideways motion.

The next leg down might be starting, though the time proportion seems awkwardly short.  It's too late to give this any deeper thought, and next week should clarify the picture.

UPDATE:  I would like this to be a correction of the drop from Tuesday, Sept.27.  But, if so, it passed the .768 level at 1169.96 by a couple of points.  This is extremely steep for a retracement, but not impossible.

The market is not well known for doing what I'd like.  But if it does, then my prediction of an intrmediate bottom in the 1000-1050 range is still a possibility.

No comments: