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发表于 2010-9-21 05:45 PM
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本帖最后由 Diffusion 于 2010-9-21 19:47 编辑
Today's homework.
First I would like to remove the bars in the green box, as they are pure event-driven speculation. Someone gained a lot, others lost a lot, while the market finally went back to where it was.
The two blue lines shows the potential trajectory of the market if we hadn't have the FOMC announcement. Together with the two long lower wicks (marked by the red arrows), the intersection of the two blue lines reveals a support around 1136, which matches yesterday's consolidation area (marked by the horizontal blue line). To many coincidences? I'd say 1136 is indeed a strong support.
Conclusion: Bulls has little to worry about and the market is expected to test the previous high, which is either 1145 if we discount the bars in the green box, or 1148 if we discount Fed's capability to make loud noise.
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