Wednesday, December 8, 2010

Correction Not Over

The weakness in the second part of yesterday's session suggests the market will go a little further down. My expectation of a 25 point correction implies a target of 1210 that looks attainable especially with the put/call ratio and the 5 day ema of the put/call ratio still close to or at overbought levels:


Here is how the market could look like at tomorrow's close:


Each candle above represents a day, with the first in each case being analogous to yesterday.

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