Market Update Nov-30-2009 (Before the Bell)

Last Friday (Nov-26th) U.S. market started with over 200 points down in DOW. But throughout the half day session, market was going up. We indicated this could be a minute level wave 2. This assumption is valid only if the gap it created in the market doesn’t get filled.


If we are facing the start of the new primary wave 3 bearish trend, we expect today the market to close below the Friday’s low. Yesterday (Nov-29th), when the futures market opened, it was bullish. As of 5:40 A.M., Hang Seng is up by 687 points (3.25%). NIKKEI is up by 264 points (2.91%). European markets are slightly down. Since 11:00 P.M. yesterday (Nov-29th), e-Mini S&P 500 (/ES) is in a slightly down trend. But it does not look like a motive wave 3 down trend so far.

 
Over all we have a mix signal. We have to watch out rest of the day to see if indeed it was the start of a new bearish trend or not.

One interesting fact is that as of 6:00 A.M., U.S. Dollar Index Futures, e-Mini S&P 500 and GOLD are all slightly down. But still for every bullish bar in dollar we see a bearish bar in e-Mini and GOLD. So it looks like e-Mini and GOLD is still having the inverse relationship with U.S. dollar, but overall we see a deviation in this trend as we noticed on last Wednesday (Nov-25th).