Wednesday, October 3, 2007

Pivot Breakout

The market's blew right through the resistance pivot points on the very first trading day of the month. As a pivot primer, once "resistance" has been penetrated, it is thought to become "support" for subsequent pullbacks. The coming week will tell us whether or not this was merely a new quarter/month effect.

Either way, look for good support between the 10- and 20-day moving averages in the coming month for as long as they remain positively sloped. Obviously, earnings and any news impacting anticipated Fed actions will play an enormous role here.

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