Securities Research Services

Tuesday, November 20, 2007

Looking For a Snap Back

The transports have now firmly broken their uptrend, so while we can't call a bear market in the sector yet, the bull market is wounded severely.

Banking stocks still have some room before they reach an area where a bounce is likely, so we should continue to see erosion there as well.

The broader market is now at a place where it is likely to rally back up the hill. Sentiment is extremely bearish and indices are at support. It's a good combination for the bulls.

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