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Keene Little : 12/9/2007 11:24:43 PM

Monday's pivot tables: Link and Link

After consolidating all day Friday it looks like a good setup for another rally leg on Monday--SPX 60-min chart: Link . The projection shown on the chart at 1545 is where the 2nd leg up in the rally off the Nov 26th low would achieve equality with the 1st leg up (wave C = wave A) and is shown with the pink price projection.

The dark red projection shows the rally topping out near 1526 (where the 5th wave would equal the 1st wave--wave-v up from Friday's close) to finish the 2nd leg up from last Tuesday Dec 4th. This is shown in the SPX 10-min chart: Link . Assuming we get the rally on Monday, if it rallies right through 1526 then the next Fib projection is just above 1540 where the 5th wave would equal 162% of the 1st wave (and gets it close to the 1545 projection).

While it looks like the market is ready to rally on Monday I'm not so sure about what the Trannies will do from here. They rallied strong on Friday (up +1.8%) and left an interesting setup for Monday. The 60-min chart shows two equal legs up for its bounce off the Nov 21st low was achieved on Friday at 4898: Link . And on the daily chart that took it right up to its broken uptrend line from March 2003: Link . The bulls really don't want to see a kiss goodbye here.

OI Technical Staff : 12/9/2007 9:59:59 PM

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