I will update this post throughout the weekend with anything interesting I find. I will try this method of posting the Weekend Outlook on a regular basis.
My initial assessment is that the market looks to be in the last leg of this current correction.
The VLE price is at the 8×1 Gann angle. In a normal market, I would expect this angle to provide support and a place for a bounce. A bounce from here would find resistance at the 2×1 angle which has been resistance previously. Still, the 1×4 ascending angle could be a magnet to price. This is no time to be aggressive.
Dynamic Chart
The DJIA has not broken the 2002 lows and the move from 2007 shows a slight positive characteristic. The angle from the 2007 high to the October 10th cycle turn shows price above that angle. While price is lower than on October 10th, the slope of the move is less than the slope of the full move down.
Dynamic Chart
There have been more put buyers than call buyers over the past 60 days. This has been bullish in the past.
New lows on the Nasdaq (and NYSE) did not except the number made in early October. So far, this is a bullish divergence.
Charts courtesy of Stockcharts.com
Recap of recent posts:
- Expiration Day Reversal
- Dow, Nasdaq, VLE, and SPXEW Above 2002 Lows
- Money Flowing from Stocks to Bonds
- Long Term A-B-C Correction?
- Warren Buffett’s Pucker Factor
- Bonds Show No Interest in the Inflation Argument
- Accumulation Day Reversal
- Market Needs Leaders to Bottom
- Low Volume Day Waiting for Follow Through
- Inflation-Deflation Update
- Weekend Outlook – 16Nov08
- SP500 Index Time Cycles
- Oil and Gold
- Reading the Market is Not Predicting the Market
- Value Line Arithmetic Gann Fans and Angles
- Market Remains Trendless
Related Posts
Tags: A-B-C Correction · Elliott Wave Analysis · Market Outlook · Value Line Arithmetic Index (VLE)3 Comments
Here are some of the Forky charts for those interested in forks.
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1731508
Andy, I couldn’t agree with you more. I am 75% sure the bottom is in….so I got my little toe in a bit. but everything looks good. I have been looking at almost all chart index’s and the gold move is in the $ and looks to go much higher if I am correct. I even peeked at the Forks charts…he likes the gold bug too….but I say we watch out for the weekend blues on Wed. but volume should be very low, all looking forward to the Turkey and the beach. Now why are we stuck in the cold weather, not fair is it. I think a heatwave is due to the midwest…High around 42 thats like 90 with the weather we’ve been having… Hope you enjoyed the Snow Sat. Game was great for Lions, and the Bucks, both going to bowls. I am thinking if we start the big turn S&P could move 25%(1050)….I like that…. Hey Fork, didn’t you have Dec.4th, or was it you Andy…I think it was you….I like that date(my B,Day)! I have it turning up on my charts alot….not sure on time sequences yet? This time guys and gals we are going to make some $$$$, Jan. Calls are very active, and funny thing is Dec, is usually a down month, but not till the end….IRS and all. Funny how these guys will trade next year with capital gains being taxed out the yahoo….speaking of if you are really into a great move it will come from the big Kahoona’s BIDU, and GOOG, AAPL, RIMM, IBM. Tech has been hurt bad….Fast money will probably hit these hard….but Louisa Yamada was on, she gave her bad news, they all moaned in pain as usual …http://www.cnbc.com/id/15840232?video=935035648&play=1
she was also on Bloomberg radio several times….she’s the best….so remember if this is an upswing, it will be fast and furious, dive in and dive out with the $, don’t be caught I think it could really hurt. Later.
Libby – maybe volume today was good considering this is TurkeyDay week… I did not consider that