Market Breadth Data******************************

Sunday, December 03, 2006




Have we reached the end of the rainbow ?

The charts above and the correlation charts from last month seem to suggest so.All of the correlation charts point out to either a sizeable correction or choppy trading in December.

Judging by the high number of CIT dates I would opt for a choppy market environment.

From a classical TA point of view the trend is still intact, and there are many support lines below the current close, the most important being 1388 and 1369.
The Overbought/Oversold indicator is not of much help right now, being stuck mid-range. It is a day or two away from reaching overbought levels once again, but I think we’ll need to wait until Tuesday before the market regains its strength.
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