buy GBP now, target 1.692, SL below 1.678

Failure to breakdown focus on S & P upside, go for 1120-1130 now

The AAII net sentiment fell to the deepest level since Mar 09 and was even lower than the level seen in the June-July correction.

When this is at extreme weakness, typically a good sign to buy. Right now the weekly bear channel seem to have broken down after yesterday’s move. The downside 1000 level may not be reached by Dec 09. In fact, upside 1121 is likely to be breeched (target upside is 1130 given the breakout of the bear channel) before anything else.

Sell GBP to target 1.6300 and below

Yesterday BOE raised QE by another GBP 25B. GBP rallied versus the USD on the news given that it was half less than expected. Question is they still need further QE to jump start the economy and therefore it should be bearish for GBP.

The window could be here. There is bearish divergence on the GBP hourly chart now VS the USD. Upside momentum seems to be waning.

Could sell here to target 1.63 real soon. Stop loss at 1.6682 (Oct 23rd) reaction high.

Target S & P 500 at 1000 by late Nov/early Dec 2009

model on sell mode.

broad based breadth index is also on sell mode.

target s & P 500 by late Nov/Dec 2009 and potentially 930 area by early Feb 2010.