Dilernia Report 31st October 2007
US Markets
It all depends on how US markets re-act to interest rate news.
Medium term:- view that the market is heading higher in November.
Short-term:- the market is moving in a 2-day down move, with the weekly 50% levels in both market defining the trend for the rest of this week.
Even though the trend is down atm, and could go down further because of the forward drops in next week's timeframes, traders shouldn't fight the trend if the market is trading above them on Wednesday, and the same applies if markets are trading below them (which they are atm).
DOW and ES:-
Both trading above lower Risk levels, and up move on Wednesday would need to see ES break 1539.50, whilst DOW upside move would be back towards the highs.
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