Daily Report November 20th, 2003
Dear Member,
-Stock Indices: Nasdaq Comp, DJI, S&P500
The buyers had benefitted from the positive numbers from the real estate and the third session of a fall to do some bargain hunting. The rising trend for the Nasdaq is nevertheless broken. The support levels for the wedge and the relative strength was broken. The tech index is now moving below its 27 and 50 day moving average. The argument from the bulls is that the S&P500 and the Dow do not meet the same conditions as the Nasdaq and they officially have not put an end to the trend. Who is right? The Nasdaq or the blue chips?
The answer will be provieded before Friday. The rebound from yesterday technically has a maximum potential to 1918/1929 for the Nasdaq, 1049/1052 for the S&P500 and 9755/9785 for the Dow. These are the levels where the sales cost will be the least by the nullification from the correction above these resistances. A close at the low of the week and below the 9600 and 1030 support levels for the Dow and the S&P500 would be a confirmation for the correction towards the objectives at the base of the wedge. Before becoming aggressive with the selling, we will wait until the 3 indices are in this phase.
The chart for the QQQ’s shows the break in the support for the wedge and the relative strength. The RSI started a pullback that can not go much higher then the resistance levels at 34.65/34.94. This level will be used to try to sell short with a stop out at 35.05.
For this morning, the unemployment numbers are expected at 365k vs. 366k, the Leading Indicators are due out at 10:00 a.m. and the Fed Index from Philadelphia with expectations of 25.0 vs. 28.0 due out at 12:00 p.m.
Resistances Short term
Nasdaq: 1904, 1918, 1929, 1934,1944,1966
S&P500: 1044, 1049, 1053, 1063
Dow: 9710, 9745, 9790, 9818, 9890
Supports Short term
Nasdaq: 1893, 1870, 1840, 1792, 1735, 1640
S&P500: 1040, 1027, 1020, 1000, 990
Dow: 9600, 9450, 9230, 9000
Have a nice day,
Jean M Bourgineau
arthusanalysis.com |
