Friday, November 5, 2010

Ceiling at 1224

The overbought thrust to 1224 this morning looks to be the ceiling for now and I expect weakness on Monday with a likely gap down.  Still need to see how the last 2 hours trade, but if we finish around these prices, I expect a gap down and then a run lower to eventually fill the gap at 1196.  European debt spreads are widening for Ireland and Portugal, it is ignored for now but that is probably why the euro can't find a bid on a day like today.  Something to look for next week.  Also the European markets have been lagging badly so there is obviously meat behind the story. 

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