SPX outlook – market wrap-up

The SPX lost all of the profits literally in minutes, as you can see in the 2 minute chart. We had for 2 days a very positive astrological influence combined – the new moon with a sextile of Jupiter and Mars – both are vanishing now.

You can see that someone made a big volume sale since some guys might sit on a nice profit. The fact that the gains could not be carried over the day are a weak indication – in OCT we had no consecutive 2 days of profit for the SPX – since we are nearing month end and window dressing period we will likely remain in a positive bias but the upside is limited for now as the sector adding negative spin was the BKX (Bank Index), which still needs to finish the wave 5 down. Therefore, we need to drop below 50 again.

Next week is by many weeks poised for a downside test. As I wrote last week, this week might be tricky since a spike was due this week but we need to see by tomorrow if the brief rally is already over and we make the real low now (next week) or we take an extended consolidation pattern before making the final part of this downleg. In any case we start to get market divergences as Tech might start to outperform again.

~ by behindthematrix on October 29, 2008.

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