Monday, November 26, 2007

Qs on the edge. . again


The top chart is the Qs weekly with the 3 linear regression indicators. The LR30 lower channel break is now looking imminent.
The lower chart is the daily and shows the surge from Friday carried through for the first 30 minutes and lifted the Qs to the R2 pivot. From there it was all downhill. That little noon time swoon from PP up to S1 did offer some hope, but the failure to carry back above the R1 pivot was clue that the bears were going to make up for Friday's gains. As has been the recant pattern, the last 60 minutes saw a volume surge of selling that carried the Qs down through s2. The price/volume action is not indicative of a quick recovery tomorrow, and the market continues to frustrate any buying attempts. We are nearing the end of the month and as noted previously, November is typically the best performing month and the last week of the month is also typically very strong. So far, historical precedent has not been kind. . .I am staying 90% in cash on the sidelines until this mess gets sorted out.

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