Keene Little : 12/16/2007 10:40:01 PM
Monday's pivot tables: Link
The similarity between the indices favors the same wave count between them and currently it's potentially very bearish. The RUT probably has about the cleanest wave count at the moment and it looks like a 3rd of a 3rd wave down has started (from Thursday's high). The first downside projection for this is down to the 730 area which is just below the November low: Link
I show the possibility for a bounce back up to near Thursday's high (770 area, shown in pink) to complete a larger a-b-c correction from Thursday's low (the lower low on Friday does not negate the possibility for what's called an expanded flat correction but it requires an immediate rally on Monday morning). Any continuation lower on Monday should have you looking to short all bounces (which may be small until it gets down to 730).
The others have the same pattern and the same bearish setup. The market must rally right away on Monday or else look out below.
Note that the key levels are the same for all of them--the bulls need to break above last Wednesday's high to negate the bearish wave counts; the bears need to break below the Dec 4th lows to negate the bullish wave count possibility. A break of those lows would put the bears firmly in control of this market. Since we're closer to the lower levels, keep an eye out for the break down through the following as bearish confirmation (until these break stay aware of the potential to start rallying back up):
OI Technical Staff : 12/16/2007 9:59:59 PM
The Market Monitor has been archived. You may view it and any previous days here: Link
Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.
Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in most cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.