If SPM crosses 1325 we move higher across the board if we close below this 1320 area we may test 1310 or even 1302, but watch out for 2065 support on NDX.
I think this market is well set to stop out recent longs, with earnings of Ford, GM, Apple, I would like to think that this is just an extended test of 1322 little running of stops and probably it will cross over to 1326 to end at 1334 area.
I also think this test of DOT is critical it may hold at 630 this time we quickly move up to 665 area, also note that NDX 2065 support is the 50 days MA and so far it holding well, as I have said in my previous few posts one can see that hype has been lifted off this market without any impact on SPM, that is a very good sign as market moves on. This internet euphoria was playing on many a mind making a new irrational exuberance, now as realit strikes home, one finds out that market lagging sectors can take this SPM far above 1367 high, however keepping right now to the script a close below 1322 can hearld a move to 1302, or my NDX 1980 area, what a strange thing that it was in back of my mind that this market will be rattled to stop out rising euphoric mode, it is now a proven fact never go long when everyone else is doing that, market moves up when no one really expects. |
