Monday, December 3, 2007
Tested the 1490
Just as I posted the 1490 area was tested and Fridays failure to punch through that level, along with a not so strong reversal candle pattern on the daily chart for this recent bottom, would lead me to believe the bottom is still forming. I would expect a pullback to the 1430-1438 area sometime this week. We may break above the 1490 just to trap some late bulls. If so we should expect resistance at the 1498-1511 area. If a breakout occurs above the 1490 level look to see if it holds as support. If not, look for a modest pullback to the gap on the 60 minute chart from the open last Wednesday. Most of the corrections of this bull market have not been V-bottoms. Normally a W-pattern has formed or in one case an inverted head and shoulders pattern. I'll have one eye on the 60 minute chart and one eye on the 1 minute chart all of this week. With all the market moving news expected the next 5 days, it sets up for some scalping.
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