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Keene Little : 11/19/2006 11:19:04 PM

The choppy move higher on Friday is either a corrective bounce that will lead to another leg down (to perhaps match the leg down on Thursday) or it's in the middle of an ending pattern that will lead to another consolidation/pullback. This chart shows a depiction of each scenario: Link

As the choppy blue lines indicate, I'm not expecting the coming half week to be much more than a choppy mess as the market works its way a little higher to finish the rally leg from November 3rd. That rally leg should also complete the larger rally and set up a good shorting opportunity. It could be the end of the month before this setup occurs and I suspect we'll see VIX below 10 by that time. In the meantime continue to trade lightly and quickly in and out.

Keene Little : 11/19/2006 10:21:37 PM

Monday's pivot tables: Link and Link

OI Technical Staff : 11/19/2006 9:59:59 PM

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