Sunday Evening Post

Good Evening Capitalists,

I wish I had some new and earth shattering wave counts to discuss here. Alas, the S&P 500 is progressing how we sort of envisioned it a few weeks ago when it was very overbought. Those sorts of extreme conditions cannot last and we were do for at least some short term corrective behavior. And, "corrective" is the right term for what we've witnessed from the 1227 peak. Unfortunately, the Wave count suggests several weeks of what should be boring sideways/lower price action into the end of the year.

Weekly Support/Resistance Levels for the S&P 500:

R2: 1219

R1: 1207

S1: 1173

S2: 1158

Took a few moments to look at Gold which suffered some "body blows" in the last several trading days. Weekly Support/Resistance for Gold are:

R1: $1,377

R2: $1 363

S1: $1,341

S2: $1,329

Use the above cite levels at your discretion and risk.

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Anecdote:

We spend the weekend in the The Woodlands, TX for a large Holiday Show where my wife was a participant. The entire area was "bustling" and the crowds were buying. It was one of her best shows ever. I'm expecting a strong Christmas season, at least in "these parts"....

Football Thought:

It's an "old saw" that "Good Teams Find Ways to Win while Poor teams find Ways to Lose." This is absolutely TRUE. For an example of this phenomenon, please refer to the Houston Texans performance throughout the years. They're consistently finding new ways to lose games. Gary Kubiak probably won't be fired this year, but I'm certain he'll be making some other team a very good Offensive Coordinator in the next two years.

Market Update 21 Nov 10