Market Preparation for SP-500 Dec. 7, 2009:

Possible Scenario: Decending Channel expect flat or gap down to stay in the channel a gap up would lead to new highs. Mostly confusing read the tape. Now even more confusing. Lets look at why this is so confusing. The following is a weekly chart of S&P 500 notice the intersection of the up channel with the down channel from 08. Rounding of the top and huge indecision at this stage of the market combined with lack of volume its choppy out there.




Updates will be based upon weekly predictions with this week scoring a 4.5 out of 5 as today was really confusing with gap up run then crash crash crash followed by dead cat bounce and recovery.

My expectations for the SP-500 are based upon the current down movement inside the channel.



Setting up new scan parameters as the last set of scans were not following through and I am really just interested in finding quality plays.

Breakouts: AXTI, ASGN, EGOV, SANM, GGWPQ, OCLS, AHT, CRUS, FLOW, PSS (Set Order just above High resistance)
Previous Potential Breakouts (Looking back 5 days): INFN, RIGL, KERX, CAR, AAU, PIR, ALD (I), LXRX (I), GRT (I), QCC (I)

Breakdowns:
Previous Potential Breakdowns: PMI, MNI

Dip Picks: SRZ, NABI, CRNT, REX,
Previous Potential Dips (Looking back 5 days):

Rip Picks:
Previous Potential Dips (Looking back 5 days):

RFR Picks: GGR, AXU, MTG

Top Pick: Imminent Plays (Look for gap downs or gap ups beyond resistance)

Top Missing Piece: Stay in the channel?

Good Luck,

Tyler