Video Stock Market Technical Analysis Review 9/20/07

A little profit taking was expected after Tuesday’s massive rally and so far, the nature of the pullback is impressive. Markets found support at the Volume Weighted Average Price (VWAP) of the last three days, that means that the average long purchase since Tuesday is still in a profitable position. It is still possible and maybe even likely that the market will pull back further, but remember that markets can correct through time as well as price. Time corrections are actually more bullish because it shows there is an underlying bid to the market and right now that seems to be the message this market is broadcasting.