Purely Technical Nightly Commentary (November 27, 2006):
Tonight's commentary is going to be short and sweet. For weeks now the 20-day Moving Average line that is displaced by 5 days has been holding the market up. With the nice move down today, the S&P500 is sitting right on that line.
This is only the fourth time that the line has been met by price, since the rally took off in early August. Each of the previous 3 times, the line has held support and prices have been pushed yet higher.
What will happen this time around? We believe that in this line lies the near- to mid-term future of the markets.
We've harped on about this line in a couple of recent newsletter. If you'd like to subscribe (it's free!) to our weekly newsletter please see details below...
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