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Magnets for Dow, SP5 and a thought on R2K
Dow: 7192, 7340, 7425, 7458, 7572.5 to 7582, 7724, 7866 to 7792, 7933, 7969 to 7986, 8150 to 8045 (not a magnet trendline, just a short term downtrend line), 8142.5, 8352, 8561
The trendlines in bold are the most important for the long term health of the Dow. They meet on OCTOBER 16TH, I expect the Dow to make up its mind going into that date. Trendline crossovers often are preceeded by a hard run one way or the other. If the downtrend holds this week I suspect we will see a nice run going into mid Oct. If it fails the uptrend becomes the next target. If it fails get ready for one great buying opportunity for those looking to get into some long (more than 3 year) positions.
My weekly Dow Chart is still on sell. Short term indicators are pointing toward strength early this week. They are flattening so it is either a time for resetting them or a time for them to turn down. I don't feel confident in the market going one way or the other enough to play it right now.
SP500: 929 to 930, 929, 932, 956 to 958.5, 957, 981, 996 to 997, 1005.5, 1005.5 to 1008, 1021 to 1014, 1027 to 1029.5, 1030, 1041.7, 1054.4, 1078.8, 1103, 1127.7
SP500. The downtrend must hold or the series of uptrends will be tested. If the first uptrend holds that will be very good, if the second uptrend holds, well its OK. If the third uptrend holds the market should be bought for a short term pop. If the third uptrend does not hold I will need to reevaluate.
SP500 is also on weekly sell. This tells me the market is not ready to sustain a run.
R2K: My main index indicator is now pointing down. It could reverse if Monday and Tuesday are strong but it is not likely. I expect a retest of the 340-350 area
ht
david
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