Sunday, November 29, 2009

So much for a quiet holiday...

While most of America was getting ready for the Thanksgiving holiday, Dubai was letting the world know that it was going to suspend payments on some $60 billion in debt held by its chief investment arm Dubai World. That sent futures crashing to somewhere in the neighborhood of 1069 (cash index equivalent) while the US markets were closed. By the time the markets opened on Friday, the buyers were ready and pretty much ran it straight up until the end of the day where we saw a bit of a sell off into the close.

However, the selloff doesn't have an impulsive look to it at this juncture, so my best guess is for a test of Friday's high (1105 is a VERY key area) tomorrow morning. Of course the test will reveal where we are in the count:

Bulls: beginning of wave 3 of C and should see a strong trending day all day UP with consolidation in the 1100-1105 area before exploding higher.

Bears: finishing of wave 2 of 1 of Primary wave 3 and should see a strong reversal after a failure test of the 1100-1105 area.

Should get interesting.
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