Market Observations 01/25/08
Resistance: DJIA 12500 (450DMA); SP500 1370 (600DMA); NAZ 2410 (550DMA); NDX 1860 (400DMA)
Support: DJIA 11600 (850DMA); SP500 1270 (1100DMA); NAZ 2200 (1100DMA); NDX 1690 (900DMA)
TUES: "support NDX 1800" still hovering there. WEN: "Is it a dead cat?" THUD! & MEOW!
THU: "NDX 1850 & SP500 1375 will provide a stearn test." Right on the money.
SP500 gap up 1352 to 1357, pop to 1368, plunge to 1327, close 1330. NDX gap up 1826 to 1860, pop to 1864, plunge to close 1788.
Next weeks economic reports including New Housing Sales & Construction Spending should be a disaster. With the FOMC rate decision, will it matter?
Today, the market topped out on the 08/16/07 limit line from the recently formed top...1 year chart daily NDX:
Note todays high 1864, note the 08/16 low 1805, notice 08/16 is at the beginning of the hump we just clipped off, notice the 08/16 high is, surprise 1865.
1 year chart daily SP500: Look at todays high 1368.58, surprise, the 08/16 low is 1370.6, once again at the start of recent market top.
If the Fed does anything less than 50bps cut on WEN, or issues a rate unfriendly statement, we see NDX 1620 comin fast.
If Fed cuts 50 bps and gives rate cut friendly statement, NDX may bounce to 1970, then poof?
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Support: DJIA 11600 (850DMA); SP500 1270 (1100DMA); NAZ 2200 (1100DMA); NDX 1690 (900DMA)
TUES: "support NDX 1800" still hovering there. WEN: "Is it a dead cat?" THUD! & MEOW!
THU: "NDX 1850 & SP500 1375 will provide a stearn test." Right on the money.
SP500 gap up 1352 to 1357, pop to 1368, plunge to 1327, close 1330. NDX gap up 1826 to 1860, pop to 1864, plunge to close 1788.
Next weeks economic reports including New Housing Sales & Construction Spending should be a disaster. With the FOMC rate decision, will it matter?
Today, the market topped out on the 08/16/07 limit line from the recently formed top...1 year chart daily NDX:
Note todays high 1864, note the 08/16 low 1805, notice 08/16 is at the beginning of the hump we just clipped off, notice the 08/16 high is, surprise 1865.
1 year chart daily SP500: Look at todays high 1368.58, surprise, the 08/16 low is 1370.6, once again at the start of recent market top.
If the Fed does anything less than 50bps cut on WEN, or issues a rate unfriendly statement, we see NDX 1620 comin fast.
If Fed cuts 50 bps and gives rate cut friendly statement, NDX may bounce to 1970, then poof?
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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