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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Lillie who wrote (14272)	11/8/2002 11:16:20 AM
From: h8_2_b_l8	Read Replies (1) \| Respond to of 30712

The real victory comes when we can take out 887.81 on the SPX.

To: Jeffrey S. Lillie who wrote (14272)	11/8/2002 11:45:34 AM
From: Softechie	Respond to of 30712

heheheh...Technical Levels : When we reviewed the Nasdaq yesterday, we were looking for the index to consolidate. More specifically, we were looking for a pullback in the index that could be viewed -- from a longer-term perspective -- as consolidation within the context of a broader move higher. Well as it turns out, the index did indeed 'consolidate' yesterday. In fact, it got hit for a relatively sizeable one-day, 42-point loss. By the end of the session, the index had closed towards its lows of the session at 1,377, which was in the ballpark of our support point at 1,380. Now total volume traded wasn't especially heavy on the Nasdaq, coming in just over the 1.5 billion share mark. Yet at the same time, market internals registered a solidly bearish read for the session. Declining volume outpaced advancing volume by a margin of over 5 to 1 -- that's not an absolutely extreme ratio, but solid nonetheless. All in all, the price action yesterday wasn't great for the market bulls. While one day doesn't really alter the longer-term technical outlook -- the bias here remains higher -- it does put us on notice that the potential support points might need to be viewed from a broader standpoint. All of which brings us to the issue of what these potential support points might be. From current levels, the first -- and probably the most obvious -- candidate is the support point we identified yesterday at 1,360. This represents the bottom of the gap created on November 4th, which was the somewhat surprising Monday rally. That's followed by subsequent support at 1,347 which matches up with chart congestion and also approximates a Fibonacci retracement. Now if those two support points would fail to hold, that's where this broader view is going to help. At that point it's probably time to start looking towards the Nasdaq's 20-day exponential moving average which currently rests at 1,327. After that, you have the index' 100-day simple moving average at 1,309 and congestion around the 1,300 level which also happens to approximate a 62% retracement of the prior leg higher. So as it stands now, the broad range of 1,300 to 1,327 looks like a relatively solid floor for the time being. Now to the upside, we'll call initial resistance at our former support point in the range of 1,380 to 1,382. That area is followed by more significant overhead in the range of broader congestion at 1,394 to 1,401. If the Nasdaq should successfully navigate those two levels, watch for that infamous resistance in the range of 1,419 to 1,423. This area has been reasonably well documented as it brackets the September 11th-induced reaction lows that bottomed at 1,423, as well as the reaction lows of October 1998 which bottomed at 1,419. -- Mike Ashbaugh, Briefing.com