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MARKET CALLS

Every morning we post our Market Call before the market opens

11.24.09
Tuesday 11/24

There is considerable resistance for the Dow in this area due to a cluster of Fibonacci projections and the downtrend line from the October 2007 high. This technical resistance would be expected to act like a brick wall, preventing a further advance in the Dow.
 

11.03.09
Tuesday

The vast majority of stocks correlate with the direction of the major indices. (+) or (-) signifies a change in status today.

Short-term Market Direction: S&P 500: Down.

11.02.09
Monday Market Call

The SPY tested the gap zone #3 last Wednesday at the 1040 level, then bounced strongly on Thursday, as expected. Friday it resumed the downtrend, which we also predicted, and closed below the 1040 gap. The next target is now a bit below the 200-day moving average at roughly 985 in the S&P 500.

10.23.09
Friday

The selling on Wednesday ran stops and set up to test the first of three nearby gaps that exist in the SPY. Up-gaps represent irrational exuberance and down-gaps represent irrational fear. Usually the market will go back to test the validity of these snap decisions. The testing process, sometimes called “backing and filling,” is how the market builds a solid foundation for its stair step advance.

Yesterday we predicted that “despite the intensity of the selling pressure in the last hour, we expect the first gap level to hold for the time being.” Lo and behold.

10.22.09
Thursday

The selling yesterday ran stops and will now test the first of three gaps below. Despite the intensity of the selling pressure in the last hour, we expect the first gap level to hold for the time being.

10.21.09
Wednesday

The rally to the top of the gap zone is underway. We think it will overshoot to the weekly 200-ema around Dow 10,463, the red line in this chart.

10.20.09
Tuesday

The expected pause in the Dow was very brief (like 5 min?) and the 'surprise' rally to the top of the gap zone is underway. This is the link to Friday's chart, for your convenience. We will update the chart tomorrow.

http://www.spearreport.com/update/10.16.09_DIA.gif

10.19.09
Monday

The Dow is now testing its gap zone from below. We think it is likely to pause here and then suddenly rally to the top of the zone and possibly overshoot a bit.

http://www.spearreport.com/update/10.16.09_DIA.gif

The S&P 500 has a similar gap, with the corresponding upper level at 1096.