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Monday, December 10, 2007

X'mas Rally to 1550 in S&P 500?

The bulls staged a huge rally last week and while the volume was not very impressive, it appears that the S&P 500 has formed a bull flag on even lower volume last Monday-Tuesday. Based on the technicals of bull flag and a measured move, it is possible the index may rally to 1550 level soon.

Markets are now waiting for the Fed rate announcement on Tue. As of last Friday, the 30 day Fed Funds rate are pricing in a 59% chance of 0.25% cut and a 41% chance of 0.5% cut. Will the Fed announcement be the catalyst for the S&P 500 to rally to 1550 or otherwise? We'll see...

Mon: Pending Home Sales

Tue: Wholesale Inventory, FOMC Policy Statement

Wed: Trade Balance

Thurs:
PPI, Retail Sales, Biz Inventories
Notable earnings: COST, JOSB, LEH

Fri: CPI, Capacity Utilization, Industrial Production

1 Comments:

Blogger Tony Chai said...

Hi SOT :

You've said it.

The market has priced in the 50 basis point decrease in Fed's rate.

Let's see whats the aftermath.

Yours Truly,

Tony Chai
My Options Trading Blog

11:35 AM  

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