NDX and composite did go below 1900 and 2260 but we saw a close above 1930 and 2280, composite has to clear this 2332 area for a clear run up and NDX needs a close above 1935 today.Yesterday I highlighted << I will watch 1900 support on NDX and 2266 support on composite. A close below
this will break SPH and take it to 1210 level. I see a good opportunity on
short side if we see weakness on these supports.>> The break at these levels did materialised but a close was not possible rather we jumped up and NDX closed a little over my resistane of 1930..
I thought SOX 345 to hold and we did see SOX support holding very well, we did not even hit 345 we bounced off 348.4.
I will like 360 to be taken out for a move to 375 otherwise we may see a re-test of 350, this has been a traditional resistance going back to Nov-Dec 98 and will most likely be a good support too, a break of this will lead to 330..
I highlighted it yesterday a follows...if the higher support level on composite NDX and SOX are not taken out, one cannot expect lower levels on SP99H!!
<<SOX 345 should hold otherwise
330 support is the possible point of reversal. I think some of these stocks offer
great opportunities, if 1930 is taken out on NDX and 2332 on composite. CSCO
ALTR JBL AMAT TXN can be great buys if the resistance mentioned are taken
out, if supports are broken, I will only enter on some of these individual stocks for a
position trade with a view of 3 to six months when SOX hits 330.>>
I would like to enter the stocks mentioned above if I see a close above 1935 on NDX, that would be second close and I will tomorrow expect to pick some of these stocks as my support on SOX has been validated and most importantly 1228 was held on SP99H on closing basis, this does look like a third test in less than four sessions.http://quote.yahoo.com/q?s=^SPC&d=5d
If you closely watch it is this 1240 on SPC or 1246 on Sp99h that remains an important hurdle, however if SOX BKX NDX stays above 350 825 and 1935 this is going to be matter of time that this resistance is taken out..
I have highlighted in yesterday's post the conditions that should hold for a short trade, even I projected a little 'far out' view of the market with an objective that in case 1210 is taken out what happens or if 1192 is broken, the purpose of this was to indicate that market remains within a band it can trade in a higher band or lower.The fact remains that this is consolidation within a band which is very important for this market marking new highs very recently..retracement is as important as making of new highs..
My objective remains SP99H 1246 break on the up for a test of 1256.I would like to only short the market if we have a close below 1225 area, I will cover my short at 1208-10 area. BKX and DTX looks like testing 850 and 330 respectively.. |
