The NY Daily news reported after the close on Friday, that the Dow suffered its worst Thanksgiving week since 1932 (see article here)
So where did that leave stocks and bonds?
CLICK ON CHART TO ENLARGE
The large decline in stocks did nothing more than take the 500 index down to key rising support (bottom of a flag/pennant) and pushed TLT back to its 2008 resistance line.
As TLT was hitting resistance dating back to the 2008 highs, it created a rather sizable bearish wick at (2) last week! Last Friday the “Power of the Pattern” was reflecting that the Dollar was up against resistance and the 500 was at support and that if investors were short they should bring stops in tighter than normal to protect profits from being short the Russell and NDX. (see post here)
Should a rally take place today, will it really be based upon a news event out of Europe or that these key players, Bonds & Stocks, were at polar opposites (key support and resistance lines).
