[Capital Essence NewsDesk] We've opined in our previous Market Outlook –see "The rally still has a leg albeit small one" August 23, 2007 - that
the upside reward could be limited to the four-week falling trendline. With that said, the rally still has a leg albeit small one
Chart 1.1 - as you can see, the bullish opening gap that propelled prices into the area of the four-week falling trendline resistant (see chart 1.2) was met with an aggressive wave of selling.
Chart 1.2 – as predicted, the S&P 500 Index closed lower followed the test of resistant at the four-week falling trend-line.
Despite the overall weakness, the "Swing-Trader Bulletin" continues to do incredibly well as a couple of the newly setup continues to show amazing strength against the tide. Vasco Data Security (VDSI) is holding a whopping gain of about 6% since profile 2 days ago. Blue Nile (NILE), RBC Bearings Inc (RBC), Cadbury Schwepps (CSG) …etc all hold attractive unrealized gains and are moving well on the expected direction.
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