Daily Report November 21st, 2003
Dear Member,
-Stock Indices: Nasdaq Comp, DJI, S&P500
The buyers did not have the strength to hold the markets. Even after a false alarm with the White House and the positive employment numbers, the leading indicators and a mixed number from the Philadelphia Fed caused the sellers to remain present at any strength in the indices. This action pleads in favor for the end of the bullish movement and a correction to come towards the base for the wedge for all the indices. The Dow and the S&P still have not given the signal for the end of the wedge and they remain above the 9600 and 1030 support levels. The signal is expected for today by a close to validate the weekly reversal configurations.
At this stage and by looking at the negative divergences for the indicators, it seems now a little probable that the indices will form new highs. The resistances levels that should not be exceeded are at 1915/1928 for the Nasdaq, 1044/1046 for the S&P500 and 9713/9745 for the Dow. Only by going beyond these levels will it call into question the correction scenario to come. For now, the test of the first support levels at 1840/1840 for the Nasdaq, 1020/1018 for the S&P500 and 9540/9500 for the Dow are planned for today. After a rebound will follow for two to three days, which will direct us to engage in selling more aggressively and play the base of the wedges.
There is no news for today, but the options expiration should create volatility.
Resistances Short term
Nasdaq: 1904, 1915, 1929, 1934,1944,1966
S&P500: 1044, 1048, 1053, 1063
Dow: 9713, 9745, 9790, 9818, 9890
Supports Short term
Nasdaq: 1870, 1840, 1792, 1735, 1640
S&P500: 1030, 1027, 1020, 1000, 990
Dow: 9600, 9500, 9450, 9230, 9000
Have a nice day,
Jean M Bourgineau
arthusanalysis.com |
