Market Talk / Dec. 30 - Jan. 5

**The_Technician** · 01-05-2008, 09:04 PM

Originally Posted by Corepuncher

I totally agree a rate cut, even a large one, will not bring us out of this situation, but I bet the market rallys if they cut 50. Rally 2-3 days then stalls, then sells off hard again.

I would have expected buyers to have stepped in already sub 1415...maybe 1400 is the key level for a bounce? On the other hand, On Fast Money the other night Jeff suggested playing the S&P for a trade, with a tight stop at 1400 (sell once broken).

Pretty meager Economic calendar for next week. Nothing Monday or Wednesday. Looking ahead, the week of Jan 14th looks like it could be insane given the amount of data to digest:

http://www.briefing.com/Investor/Pub...icCalendar.htm

Can't wait!!

I'm looking at the S&P around 1360 (CB's) before a rebound at this moment.

Carnac

**caymanbrac12** · 01-05-2008, 10:10 PM

The market has become very oversold based Friday's action. Also the TRIN closed way above the 3.0 level on Friday which indicates a lot of panic from investors. Thus it appears an oversold bounce is nearing and could develop by Monday or Tuesday.

The best thing that could happen on Monday would be for a gap down right at the open which would give us a more favorable entry price. However it's possible the market could gap up substantially at the open as well so if that happens there really isn't much we can do about it.

Greg