Good signs for the bulls

Today the market spent most of the time between 663 and 670. Although the late bears tried again to push it down but could not do it much below 663. For the bulls though, the 670 area proved to be too much resistance for the day. However, the fact that it had broken the 5-day trend of closing at the low of the day was a major achievement. In fact, closing at the high of the day would provide the bulls with further upside momentum. In addition, this is the first time it closed above forecasted value 665. Tomorrow's values to watch are 672, 665 and 661. For the trend to turn it has to close above 665 and in fact it better close near or above 672 if it were to get to the near term target of 680. This is a falling wedge and break out to the upside is imminent. Also, parking money in high beta stocks such as RIMM proved to be an advantage so far. But and this is a big but, there is a dark side to it in that the volatility index better come down in a hurry or we will be down in the dump again. It is comforting though to know that the volatility indicator which shows the change of trend on Oct11 and Nov1 also appeared on Nov26 to a lesser extent.

2c