Market Observations 12/07/07

Resistance: DJIA 13670; SP500 1510; NAZ 2720; NDX 2135
Support: DJIA 13235; SP500 1485; NAZ 2660; NDX 2100

Yesterday, "Next resistance at SP500 1510 and NDX 2140." SP500 right on, upon further review NDX at 2135." Both kissed the number and fell.

NDX open 2127, fall to 2116, rise to 2135 (resistance), close 2130. SP500 open 1508, hit 1510 (resistance), fall to 1502, close 1504.

Will Santa lead the lambs to slaughter come New Years? Maybe, there is strong resistance at this level. Tuesdays Fed decision and statement hold the key.

Any kind of disappointment will plunge this market to pre March depths, 50 bps cuts probably garner a rally with year end window dressing till Jan 2nd.

Happy Chanukah! Often wrong, but never in doubt, this is the Nattering Naybob and you're not!

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