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Tuesday, November 11, 2008

Does GS Signal A Reversal?

I have been looking for signs of a possible reversal, and today we might have gotten one. GS has been getting crushed, but staged a nice reversal today and closed near the top of the day's range.
Maybe, just maybe, this could be a key reversal.

The market got off to a bad start this morning and really didn't do much until we got a rally and sell off in the afternoon. Last week's low has been undercut, and we closed under last week's low bu about a buck. MACD is threatening to cross again, sending us down to a retest of 839, but there is still a chance we can reverse and try to get through 950.

The sectors were all pretty weak today, except for Utilities. We are back in defensive mode.

The Nasdaq performed on a par with the SPX. We are still waiting for either the Nasdaq or NYSE to take the lead, until one does we are probably in a trading range.

Another sign of a possible reversal coming was the strength of the Russell 2000, although it did give up a lot of that in the last hour of trading.

Intraday, you can see how strong the Russell was (Russell in red, SPX in blue). You can also see how it weakened significantly going into the close.

I have been updating the earnings sheet, it's amazing how much time it takes when you have 200 stocks reporting every day. I will not be making any deletions until this earnings season winds down next month. I will probably be making more additions, as it is well below the 100 stocks that I wanted to limit it to. Anyway, look for an update tonight.

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