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Wednesday, October 15, 2008

10/14/2008 Market Recap: Bearish Reversal Day

Today the situation doesn't look so good.  Technically we got a Bearish Reversal Day.  One day may not mean anything, and the key is the follow-through on the next day.  So let's see how the market goes tomorrow.

1.0.6 S&P 500 Bullish Percent Index.  The good news today is we finally have a mid-term buy signal.

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Here is the overview of all signals: 0.0.0 Signal Watch and Daily Highlights

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0.0.2 SPY Short-term Trading Signals.  A Bearish Dark Cloud Cover appeared on the chart, and the reversal is close to both the resistance and Fib 50 level at where usually a bounce back stops.  Therefore the situation is a bit bearish and we can only wish there is no follow-through tomorrow.

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1.0.3 S&P 500 SPDRs (SPY 60 min).  This chart gives us a hope in some extent.  SPY pulled back to the support level, and RSI still held above 50.  It may be testing the lower edge of the price channel, but I don't know if it will bounce back up to the upper edge of the price channel or break out the price channel at the downside.  We will know tomorrow.

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1.4.2 S&P/TSX Composite Index (60 min).  The pattern on Canadian market looks like a breakout of the Bullish Falling Wedge and testing of the breakout point.  We still have to see how it goes tomorrow.

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