Halloween week

This coming week, we should not see any Halloween ghosts or goblin's. With many Mutual Funds year end this week, money managers should keep the S&P 500 trading between 1065 and 1100. We are very close to major resistance on the Dow and S&P. First, we have the 500 day moving averages coming in at 10,325 on the Dow, and at 1120 on the S&P. Second, we have the 50% retracement fib(mid) from the 2007 high to the 2009 low, at 10,300 on the Dow, and at 1120 on the S&P. I'm hearing that many hedge funds are close to being fully hedged up here. In my opinion, this is NOT the time to be looking for NEW LONG POSITIONS. Look at protecting your profits!

Microsoft chart

Last friday, Microsoft gapped up at the opened and closed the day on it's low. As seen in the chart above, this happened on very heavy volume. This is a textbook example of a blow off top on Microsoft. The smart money that bought at $20, was selling to the dumb money(retail investors) $29.

Bradley Model 2010

The 2010 Bradley Model chart, is calling for a big massive move, in the spring and summer of 2010. Will it be a retest of this years lows? Or another rip roaring rally higher? We'll know the direction by the end of March 2010. Which ever direction it goes, it will be a big massive move. Bigger than this years move! Maybe the biggest in history!

Bradley Model vs S&P

The next Major Bradley date is 0n November 9th, 2009, and the new trend will stay in tact until the next Major Bradley date on March 1, 2010(see new post above). Since we have been in an up trend, since the last major Bradley date on July 15, 2009, I think we will start a sideways trend or down trend. The Model has an uncanny way predicting trend changes and chaos. ....just look at the chart above!

for more info on the Bradley Model, click this link.

http://www.amanita.at/Interessantes/Artikel/detail.php?id=310

S&P at MR1

The S&P 500 last week ran into resistance (sellers/profit taking) at the monthly R1 pivot. And came very close to filling an open gap from last October's melt down. My new target for this year is at the 50% Fibonacci, which is at 1120. December S&P futures Yearly R1 pivot is at 1136. I feel we'll see 1120- 1136 by December's Quad expiration. We still may see a fast pullback that will be bought. This coming week's trading range should be between 1065-1100.