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S & P - Market Provided Clue To Rally. Best Source Of Information: Price And Volume.

   

Wednesday Evening  1 December 2010

 Yesterday, we said that developing market activity could lead to an
important, surprising change, and change the market did.  Price went
from the precipice of falling out of the lower end of the range to rally
to new highs on the upper end of the range. 
[See S & P - Two Sides To Every Market, the second, fifth and sixth
paragraphs, click on http://bit.ly/gHpfxZ]

 The analysis shows how critical Tuesday was.  Mention was made
that the farther along price moves on the Right Hand Side [RHS] of a
developing trading range, the closer it is to reaching a resolve, [2nd
paragraph, mentioned above].

 There was no ending action in Wednesday's rally, so higher price
will go.  The question remaining now is, how high?  The first possibility
is that price will fail here and go back into the trading range, highly
unlikely.  It would seem that a challenge of the recent early November
high, 1224.75, is almost a certainty.  How price reacts around that
level will tell us whether to expect yet higher levels after that.  For
now, we have confirmation that a turning point has occurred on the
daily chart.

S&P D 1 Dec 10