November 28, 2007 - Market Recap

The DJIA had a very good day. The downtrend that we are in looks like a classic Elliot Wave. We are starting into a slight upturn in a bear market. It appears that it may go to 13,500 and then turn back down. This should occur by the end of next week. The downtrend will resume and go below 12,500. The five waves can easily be seen during the third wave down. We are now in the 4th wave up. which should be very similar to the uptrend the end of October with 8 days up. We have now had 3 days up so another week and it should turn again and have a significant down turn.
The S&P will hit resistance at 1,500 and will turn back down. Notice the first wave down hit support at 1,500. That has now turned into resistance and the first wave will not be broken at this point before another turn down. There will probably be some consolidation for a couple of days and then up to 1,500 and then back down significantly.

The Nasdaq is not a clear cut as the DJIA or the S&P. It did a double top and then turned down. Would expect it to go to 2,700 and hit resistance and then turn down again.


The Russell will hit significant resistance at 780 and then turn back down. That will be about a 50% retracement. Notice how the Stochastics are hitting lower highs each time but not a lower low. Shows that the bears are winning.

Be prepared for a major downturn in a week. All indicators are that cash is flowing out of the market.