Oct 28, 2009 Morning Update – Possible Target Area for Corrective
Posted by pugsma on October 28, 2009
This morning action extends to the downsid of the C-wave. We had a gap fill of the 1057 to 1060 gap. We have now closed 2 of the 3 gaps from the last up-side move off 1019. There is one more small gap down around 1040.
The head and shoulders target and C=1.62A corrective target both come in at 1047. Also, the 50-day SMA is sitting at 1049. Also, there is a green support line from the previous three dips during this bull run up off 869 from July. Finally, the 62% re-tracement from 1019 to 1101 is at 1050. So there are a lot of things lining up as support here. I expect this area of 1047 1050 to hold and produce a strong reversal later today or tomorrow morning. This should time out nicely with the 3rd quarter GDP number set to be released tomorrow morning (10/29/09). The market is expecting a +3.0% GDP with a range of +2.0% to +4.0%. Anything near +3.0% should pop the market to the up-side.
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