TRANS technical outlook – market update

The Trans made a perfect 61.8% retracement but again we have only finished wave 3 down and made a rebound to the monthly Bollinger. The 4100 is a strong resistance as 3300 a good support. Nevertheless, the ascending triangle pattern we broke out of has a target of 2500 and we will drop to that level over time as recessions are not good for the Trans anyway.

Market trades at very low volume and the biotech sector is a favorite for the Obama win and rises strongly today. Some election specific positions are being taken but the broad market is basically quiet and the VIX nearing the 50 target slowly with a loss of 5 points today. Later this week, European interest rate cuts are due, which keeps the spirit up so far but a retreat is still due as every wave has to go by corrective counterwaves. Hence wave B down should start anytime.


~ by behindthematrix on November 3, 2008.

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