Prior to yesterday's strong upward surge the recent price behavior for the S&P 500 index (^SPC) had shown that traders wanted to test whether the 20-day EMA was going to provide support as it has done throughout the entire bullish move since August. After the rather inconclusive reaction from equity traders to Friday's employment data the bulls vigorously reasserted themselves yesterday and pushed the index back towards its recent high.

The Nasdaq Composite index (^IXIC) has proportionally even less ground to make up as it heads towards the recent highest close of 2379 registered on October 26.

The oil index (^XOI) is quietly and steadily moving back towards the mid-summer levels but has to get through possible chart resistance at 1160.

TRADE OPPORTUNITIES/SETUPS FOR TUESDAY NOVEMBER 7, 2006

The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions. None of these setups should be seen as specifically opportune for the current trading session.

We recommended Abraxis Biosciences (ABBI) on the long side in Friday's commentary and yesterday it obliged with a more than eight percent upward move as it extended the upward staircase pattern.

We repeat our observation from yesterday's commentary that Emulex (ELX) has a mini bear flag formation.

Crown Castle International (CCI) has a bullish flag and the spinning top formation from yesterday could be the precursor to an attempt to reach back towards the top of the recent range.

Metropolitan Life (MET) could also be vulnerable to renewed selling pressure.

Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market. He specializes in market neutral investing and and is currently working on a book about the benefits of trading with long/short strategies, which is scheduled for publication later this year.

Disclaimer
The purpose of this article is to offer you the chance to review the trading methodology, risk reduction strategies and portfolio construction techniques described at tradewithform.com.  There is no guarantee that the trading strategies advocated will be profitable. Moreover, there is a risk that following these strategies will lead to loss of capital. Past results are no guarante of future results.  Trading stocks and CFD's can yield large rewards, but also has large potential risks. Trading with leverage can be especially risky. You should be fully aware of the risks of trading in the capital markets. You are strongly advised not to trade with capital.