OJ..
Look at the low of SPM we tested that 1437 area which goes very well with that support 1442 which has been held for quite sometime.. that 500 point move was vicious but if you were in it nad troubled by margin calls but if you were safe it was purely a noise and a healthy move to test basis, I think that market is very prone to htese kinds of moves..
1538 resistance failure was good, you are right.. however,I have good feel right now for the market..
DOW my point of 11150 remains unconquered, it pushes up and backs down it will be aobve 10260 area that a good move to old highs may be validated..Last 100 week charts of DOW will give you a strange story that DOW is up 21 percent and Comp up 125%, now that low of 3rd on Comp establishes 69% higher Comp still on 100 week basis what was a catastrophe was still a big high on Comp, now DOW 21% high in last 100 weeks is no match to the earnings growth I have seen in some of the DOW stocks like AA or for example GE or take the new DOW entrants like MSFT INTC, for me DOW has a potential and htis point of view is not from value but comparison of earnings growth with last 100 week move of DOW I see a coling effect here, the DOW earnings need to catch up.. 9800 break in my opinion leads me to bearish thinking but right now it looks good..
Comp 200 days mA test near test was OK on last lows however, I would assume that a retest of 3800 can be alright within this uptrend, we did go through it in last week low on 3rd, and can have another move however, looking at most of the key stocks and key indicators it looks we are going to move higher from here but I will be convinced only if 13 days ma is taken out..on Comp.. I see 4780 --4820 area as area of resistance..
Have a good day as I go back to my trading desk..gg
|
