an tSionna 11/06/08 Noon.

an tSionna--Money flow Analysis

This chart does not seem to be opening but here is its caption anyway. Because of the increase in volatility this fall, stocks trade in daily ranges that sometimes took months during the last bull market. The last two day's decline therefore needs to be kept in that perspective. Each of these days could qualify in days of yore as a mini-crash. Currently it is simply standard volatility.

Stocks rallied close to 20% from their 10/27/08 lows. Some pull back and profit taking had to be expected after the election. Socks seem to currently be forming some sort of base between 840 and 1000 on the S&P 500. In the long run a period of base building could be considered healthy for further price appreciation later this year or next year. Certainly we have built some bench marks in terms of support & resistance that need to be respected at this point.

*Currently Long SPY and various S&P related ETFs for various client accounts.