Goal posts cannot be allowed to keep changing, the break yesterday was in line with our expectations of failure to stay above 50 days MA on Comp and NDX i.e 2512 and 2131. SOX DOT and PSE are still above my supports at 402 564 and 535, however 1230 level on SPM was difficult to hold. May the Mr Poole punctured the formation, however I will stick to my post of June 7th, the parameters of the post apply strongly andI continue to follow those ...we have all the potential if we stay weak to go and test old lows this will synchronise with economic releases, the indexes are still sitting at my supports like Comp 2475, this was highlighted in the same 7th June post and I expect that probably after a test of 2055 and 2455 area we may hold within a range until 11th the day PPI will be released.1318 remains the short term trading support a break could elad us to 1302 potentially, but watch out for a false break, also this moveof yesterday wherewe saw 50 days MA on Comp pierced would be technically a false upside break. In my opinion the Techs remains solid as far as SOX and PSE are above 405 and 535 area, also DOT will turn weak and may test 500 or even 450 area if 564 is taken out and 550 is broken on the second day we will go lot lower in DOT and Comp will follow inevitably. Poole and profite taking were two factors that lead to good solid selling however the fundamental picture remains the same, undercurrents of increasing demand leading to jitters in them market.
IQBAL LATIF on Jun 7 1999 10:14AM EST
Pits think that this thing can go up to 1350, if 1318 holds. NDX 2121 now two
closes above 2131 the 50 day MA we are in good shape. Comp 2497 and 2512
are intermediate resistance levels we get two closes above this we go to old highs of
2677.
If we break this on closing basis we go back to lows, we are in range, it is not a
break out still, the range once broken will give me an idea of the new direction. The
way individual stocks are behaving it looks these stocks want to go higher, this
looks like an earning driven rally, the market has built in .25% hike at the supports.
The leaders look good, the broad market should follow normally.
PSE 535, BKX 835 are also important to watch. |
