Tuesday, November 06, 2007

Daily Numbers for Turnaround Tuesday, Nov. 6/07


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ES Resistance @1524-1528, 1534-1538, 1548-1552, 1558-1561, 1574-1578
ES support @1496-1500

POC=1506.25 (3-day downtrend)
Weekly Pivot @1424.25

Open gap @1490 (9/17)
Open gap @1517.50 (11/2)

We've reached oversold conditions, and support in the high 1490's has held up well, and futures is slightly up in the overnight session, so I think the stage is set for a relief rally tomorrow, even if it is of the dead cat variety. The only thing that would prevent a rally would be news of yet another subprime shoe dropping. I think we will see a tag of 1517.50 to close the gap, but I'm not sure how to play it, since it's hard to find a low risk entry.
Perhaps if the 7am reversal plays out according to expectations, we might see a run up to 1517.50, and perhaps even beyond to resistance @1525-ish.

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