Securities Research Services

Wednesday, August 08, 2007

Technical Bounce Extends

The response to the Fed's status quo statement was met positively yesterday and program trading took the market into positive territory at the close. Breadth is still poor though and all major indices remain below their 20-day averages.

We won't make any predictions today, but will instead sit out the day and watch to see how the market behaves now that the Fed has spoken.

The intermediate market trend remains down, so we are looking for prices to reverse again once this oversold bounce is played out.

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