Market Comment Update on Nov 5, 2008 ~ Markets sold off today as some took profit from the recent market rally. As alerted yesterday, the rising wedges on 60min are now broken to downside resolving the negative divergences which we have seen. We are in VST cycle change date +/-, and with the sharp sell-off today, it is better to follow indicators at this point instead of anticipating. In volatile market as we have, markets can change very quickly.
We have gaps unfilled and sharp rally 10/28 long candle which will likely be tested with gap-fill near the recent bottom.
Futures are trading down after CSCO earning report. So markets are still very volatile.
With 2x ETF, markets can be very volatile as we can see today.
In conclusion, how market trades during the next two day with the Friday eco numbers will be important as to testing the low. The gap-down tomorrow morning action will be in focus to see whether the gap-down is bought to close. Good luck with trading
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