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Sunday, October 24, 2010

Week-end Outlook!!!

The Dollar put in a bottom of some sort and according to the MACD, it has lots of run to run to the upside, the first challenge for the buck will be breaking out of the green channel line in the $79-80 level. If the 1-2 count with question marks is correct, the Dollar needs to accelerate upwards in a strong, and quick impulsive 3rd wave up.
The trend in the SPX continues up, with the next major higher high up at the 1210 level, this is the last one before the SPX can challenge the major high from April. The squiggle count for the month of October is open to multiple variations, none of which is reliable enough to trade off of, so until the counts become clearer, it is best to use all the other forms of Technical Analysis to set the trend. Longer-term the market is in extreme over-bought territory(see Saturdays post) and ripe for a new down-trend, short-term is mixed, at best.
These are the older highs and lows that help determine the shorter-term trend, first support now is 1171.17, followed by 1159.71. There are also two large gaps, one at the 1130 level, and the other around the 1040 area.

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