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Wednesday, November 14, 2007

Yet another Reversal

Yesterday I had 2 computers go down within an hour of each other, so I spent most of the day today trying to get one back up. I didn't get a chance to follow the marjet very closely, all I heard was that it was up in the morning (which I expected), and closed down (also expected). It's actually quite amazing how well support and resistance levels are working here. The SPX kissed the 38% fib restracement level, then dropped.

The NDX gapped up big as the dumb money got suckered in by yesterday's rally, and the smart money pulled the rug out from under them. We may see a trip to the 200dma.

The materials sector (along with energy) is one of the few areas of strength left. Watch for a retest of the 200dma.

The financials seem to be where the money is headed now. There are going to be a lot of stocks here which were overly punished and are at bargain basement levels. I wouldn't touch CFC with a ten foot pole, though.

Tonight's post is going to be brief as it is late and I have quite a bit more work to do. Hopfully by tomorrow things will be back to normal.

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