Summary for Week Ending 11th November 2006
Obviously the biggest news story for the week was the mid term elections and the removal of one of the many ostriches around the Washington habitat. One can only hope that the cull is maintained and some sanity can prevail. War is good for business, but only a few businesses. Peace on the other hand allows the money to be utilized far more usefully ( about 500 billion I read somewhere). Thats a lot of cash.
Last few weeks...
Following on from last weeks report, the trend is still intact. the 5/6 day decline has been countered by a 4 day rise to the previous swing high at which point the market peeled off from it on Friday. What we should be looking for here is a push up again past the old high. If we get a lower high here then we are looking at a longer period of decline, as well as a move that may get to the 56 point level as highlighted last week.
Next Week...
The market is poised at an interesting point. So long as the counter trend off the weeks high doesn't go past 3 days and then bursts forward the the medium term trend will be intact. A move sideways or down past 3 days would indicate weakness, so on this point alone, we should see a new high before the end of this week if the scenario is to remain. As mentioned previously, a lower swing high here would be bearish.
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