I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Monday, November 28, 2011

Nov 28

My system went into extreme divergence on Friday (while I wasn't here). The move up today is not surprising in direction. However, even though my system issued a buy signal at the open, I am not in the habit of buying the market on a 3% gap up after a holiday weekend. I will wait to see what the pullback says, but I will likely be going long tomorrow.

Overall move was a 62% retrace of the October run. And there are good A to C relationships on the SPX and COMPQ. [Please see the post Randomly Useful: Fibonacci Ratio Table (Updated) for a proper list of Fib ratios].

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