Tuesday, Dec 2nd market outlook

All 3 Indexes, Dow, SP500 and Nasdaq are now below their 20 day Moving average. It was a big drop for the Dow having lost 679 points yesterday. The facts confirmed a pullback was in order and as sure as the sun rises, the market pullback was no real surprise Monday. What was a surprise was the amount of the pullback all in one day. The patterns of the candlestick for the day are the Hammer pattern suggesting the reversal of the previous trend, which was up for 5 straight days before this drop on Monday.

So what's ahead? We may have a rally Tuesday, since the drop was so severe, but I do not expect it to return to the close of the markets on Friday, until it goes down more in the days ahead and possibly retests the lows achieved a week ago last Thursday. I repeat, I do not expect the market to go back up, until we go lower. I have put orders in for the purchase of SSO at $18.20 and have also put in Sell orders for SDS at $120-$125/share. These orders are limit orders and Good till cancelled. If we stay in a tight range neither order may execute. But I am willing to accept as a strong possibility. I may need to wait for a breakout either to the upside or downside before either order gets filled.

I have kept my Ford shares and will watch the price to either add more shares on more of a pullback or to sell on a rise again within my $3.00 to $4.00/share.

Hope this is helpful to you, as many more visitors are reading these market entries this past month or two. Thanks for visiting and for some of your private emails to me.