Securities Research Services

Thursday, October 02, 2008

Upside Surprise Potential Remains High

As we have been discussing in recent updates, this is no time to step in and try to catch a falling knife. Nevertheless, the potential for an upside surprise remains strong.

The SPY is extremely oversold on a weekly basis and has dipped down below monthly support. The potential for prices to hold near current levels and rally firmly higher are much more likely from a technical point of view than further significant downside is.

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