Stock Market Recap for 11/30/07

The futures got a nice boost Friday morning from a series of positive developments that included a drop in oil prices below $90 per barrel, a report that a bailout plan is in the works for subprime borrowers, and a tacit signal from Federal Reserve Chairman Ben Bernanke that interest rates will likely be cut again at the December 11 FOMC meeting. The Government it seems is likely to step in and support the dollar (just my thinking), so the Fed can cut fifty to bail out the Banks.
(See charts) Technically the market averages were up substantially over the previous three days with a gap higher start on the fourth day to resistance near 1490 S&P 500 (Oct low/early Nov breakdown point, Mid-Nov reaction high, 50% retrenchment of Oct-Nov decline), 2698/2701 Nasdaq Comp (same resistance as S&P 500) and 13346/13460 (early Nov low/breakdown point, 50% retrace) providing an opportunity to book at least some profit, we could get a couple of down days Monday and Tuesday before the buyers come in unless there is some more good news. Top performers on the day outside of Finance/Housing included Transports, Paper, Tobacco, Retail, Medical Supplies and Media. Weakness today came from Computer-Hardware, Mining, and Gold/Silver.
In a nutshell, we are up big on the week with housing and financials as the front-runners, which is fitting since this all started with them so they should bottom first. The market doesn’t bottom all at once, so if you look at the different sectors the Nasdaq was hanging in while the S&P and Dow were getting hammered, until it dropped a hundred points in a two day period. So I expect that to be a laggard.