Market Soapbox & Key Resistence Levels
Todays market action was indicative of a sell off from 11AM EST straight into the close. Major damage was inflicted on all indexes and across all sectors. Negative volume and issues were 3 to 1 on the NYSE and Nasdaq, the AMEX had negative volume of 8 to 1, not a good sign.
We will see either: a small bounce up for month end window dressing before the non farms payroll report on April Fools Day, or the market will continue to fall into Friday. A weak <175,000 report will make the chart pattern appear like a pennant flag waving till April 6th, then its down some more. A strong >250,000 report will make the charts look like a downwards staircase design, and there will be no relief till the end of April, after 1st Qtr 05 reporting is done.
To repeat, this bottoming process will continue regardless of any bounce. I expect the Dow to reach 9900, SP500 1110 and NDX 1375 in the near term. This would be a nice position from which to start nibbling on some high yield divident and energy issues. Below are some critical resistence levels to watch for.
DJIA - Dow Jones Industrials
10405 fell off its 120DMA, resting on its 150MA
10390 200DMA & 52 week MA
10370 01/24/05 low
9900 60 month MA
9660 10/25/04 low
SPX - SP500
1165 sliced through 120DMA & its 01/24/05 low, resting on 150DMA
Next support levels:
1150 200DMA & 52 week MA
1125 60 month MA
1090 10/25/04 low
1060 08/13/04 low
MID - S&P 400 Mid Cap
648 sliced through 50DMA & its 02/23/05 low, resting on 100DMA
Next support levels:
640 120DMA
630 a conjuction of the 150DMA and 01/24/05 low
620 200DMA
610 52 week MA
580 10/20/04 low
548 08/13/04 low
525 60 month MA
RUT - Russell 2000 Small Cap
605 plunged through 150DMA closing at its 01/24/05 low.
Next support levels:
595 a conjunction of the 200 DMA & 52 week MA
563 10/20/04 low
515 08/13/04 low
500 60 month MA
NASDAQ
1973 plunged through 200DMA & 52 week & 60 Month MA
Next support levels:
1899 10/15/04 low
1852 09/28/04 low
1820 08/31/04 low
1750 08/13/04 low
NDX - Nasdaq 100
1464 clinging to 200DMA
Next support levels:
1416 10/12/04 low
1377 09/28/04 low
1354 08/31/04 low
1302 08/13/04 low
SOX - Philadelphia Semiconductor Index
410 plunged through 60, 120 & 200DMA, resting on 150DMA
Next support levels:
383 01/24/05 low
350 09/08/04 low
We will see either: a small bounce up for month end window dressing before the non farms payroll report on April Fools Day, or the market will continue to fall into Friday. A weak <175,000 report will make the chart pattern appear like a pennant flag waving till April 6th, then its down some more. A strong >250,000 report will make the charts look like a downwards staircase design, and there will be no relief till the end of April, after 1st Qtr 05 reporting is done.
To repeat, this bottoming process will continue regardless of any bounce. I expect the Dow to reach 9900, SP500 1110 and NDX 1375 in the near term. This would be a nice position from which to start nibbling on some high yield divident and energy issues. Below are some critical resistence levels to watch for.
DJIA - Dow Jones Industrials
10405 fell off its 120DMA, resting on its 150MA
10390 200DMA & 52 week MA
10370 01/24/05 low
9900 60 month MA
9660 10/25/04 low
SPX - SP500
1165 sliced through 120DMA & its 01/24/05 low, resting on 150DMA
Next support levels:
1150 200DMA & 52 week MA
1125 60 month MA
1090 10/25/04 low
1060 08/13/04 low
MID - S&P 400 Mid Cap
648 sliced through 50DMA & its 02/23/05 low, resting on 100DMA
Next support levels:
640 120DMA
630 a conjuction of the 150DMA and 01/24/05 low
620 200DMA
610 52 week MA
580 10/20/04 low
548 08/13/04 low
525 60 month MA
RUT - Russell 2000 Small Cap
605 plunged through 150DMA closing at its 01/24/05 low.
Next support levels:
595 a conjunction of the 200 DMA & 52 week MA
563 10/20/04 low
515 08/13/04 low
500 60 month MA
NASDAQ
1973 plunged through 200DMA & 52 week & 60 Month MA
Next support levels:
1899 10/15/04 low
1852 09/28/04 low
1820 08/31/04 low
1750 08/13/04 low
NDX - Nasdaq 100
1464 clinging to 200DMA
Next support levels:
1416 10/12/04 low
1377 09/28/04 low
1354 08/31/04 low
1302 08/13/04 low
SOX - Philadelphia Semiconductor Index
410 plunged through 60, 120 & 200DMA, resting on 150DMA
Next support levels:
383 01/24/05 low
350 09/08/04 low
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