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Strategies & Market Trends : Technical analysis for shorts & longs

SPY 660.19

-0.8%

Nov 18 4:00 PM EST

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To: Johnny Canuck who wrote (43304)	5/15/2006 9:47:26 AM
From: Johnny Canuck	Read Replies (2) of 68096

TradingMarkets.com The Nasdaq: Breaking Support Friday May 12, 9:13 am ET By Gary Kaltbaum We have been telling you that until the "markets" break support, they continue to get the benefit of the doubt. We have also told you the NASDAQ-types have been lagging badly. For the NASDAQ and NASDAQ 100, the benefit of the doubt is history. The NASDAQ easily sliced through its 50-day moving average as well as near-term support at 2300. Next support will be the more important 2232-2240 area. The NASDAQ 100, which is much weaker than the NASDAQ, easily sliced through the 50-day moving average and broke support at 1680. Not only was the 50 day broken, but the 150-day average as well. Next support...and vital is support is 1633. The (AMEX:SOX - News) is now coming apart at the seams. It has been laboring and lagging since its top in January. It is now on the verge of breaking longer-term support at 489. We suspect the NASDAQ/NDX/SOX/INTERNET/BIOTECH are only going to get worse. INTERNET and BIOTECH have been in their own private bear market. The amazing thing is that these areas led the market out of the brutal bear in 2003. Now they are leading it down. We would completely, seriously avoid these areas as all bounces will be sellable as supply has taken over. We suspect there is risk here. The strongest groups as well as many of the markets around the world are stretched and extended way beyond the norm. They are going to correct and believe this will be the opportune time. As far as the other major indices, we believe they are going to correct also. Just keep in mind, if the NASDAQ drops 10%, the DOW will drop 5%...and so on. This is normal as the NASDAQ usually leads down and up. We also want to make note that the DOW has been leading recently which is never a thrilling sign. As far as COMMODITIES go, they are the highest of risk here. Some names actually have been Internetish...as their charts look like the Eiffel Tower. We suspect and believe that serious corrections are due also. We will have a much bigger report on Monday...but we urge you to now start playing defensive as many areas are speaking very loudly.

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