Securities Research Services

Friday, October 12, 2007

Key Reversal Day May Change Market Character

Yesterday the market gapped higher in the morning and the bull trend looked healthy throughout morning trading. However, in late day trading it suffered a key reversal and indices sold off hard on volume.

This potentially marks a character change that needs to be carefully monitored.

Two likely scenarios to follow are:

Bulls refuse to give up the trend and after a shallow dip, prices will move back up to fresh new highs.

Or...

A top of significance was put in and prices will trade sharply lower in coming weeks.

At this point no one knows.

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