Market Observations 04/11/08
Resistance: DJIA 12635 (450DMA); SP500 1385 (600DMA); NAZ 2365 (700DMA); NDX 1875 (400DMA)
Support: DJIA 12240 (600DMA); SP500 1330 (850DMA); NAZ 2290 (900DMA); NDX 1795 (600DMA)
SP500 1360 gap down open 1357, plunge to 1331 850DMA, close 1333. NDX 1853 gap down open 1832, plunge to 600DMA 1794, close 1799.
SUN: We sense something very nasty coming out of the woodshed, and it could be a major name brand. Like WaMu
MON: rosy report from GE could send us back to test 1400. What about a bad one?
TUES: Both our numbers have been hit (SP500 1380 & NDX 1885) expect further downturn. So far.
WEN: Do tomorrows rate cuts get a pop? They did.
THU: Will semi's headfake on bogus upgrades carry the day? No way.
Then again a not so rosy GE report sends us down to test 1330 support.
The bad news from Non Farms on down is starting to pile up elephant size whilst emitting a malodorous stench.
GE, Alcoa & UPS showed that NOTHING is immune. Excepting, at the moment, PnG over 70. Watch the flight to safety, when it dips, everything dips.
Looking at a 3 year chart SP500, 08/16/07 and 01/23/08 highs draw a magical line. More or less, the same pattern on NDX.
The line cuts off the market top, below it shows clear resistance with multiple attempts to clear.
Current rebound since 01/23 has failed for the third time at SP500 1385 - 1395 area making lower highs each time.
Sitting on support, we see either a dead cat bounce or Black Monday.
No help coming from economic reports: CPI, PPI, Building Permits, Housing Starts, Philly Fed; Empire State.
Reporting, not much help either: WaMu, JPMorgan, Wells, Intel, AMD, Capital One, CIT, Merrill Lynch, Citigroup, Wachovia
If the market does not break through and clear this level soon and continues to fall further away, winter will be here very early this year.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Support: DJIA 12240 (600DMA); SP500 1330 (850DMA); NAZ 2290 (900DMA); NDX 1795 (600DMA)
SP500 1360 gap down open 1357, plunge to 1331 850DMA, close 1333. NDX 1853 gap down open 1832, plunge to 600DMA 1794, close 1799.
SUN: We sense something very nasty coming out of the woodshed, and it could be a major name brand. Like WaMu
MON: rosy report from GE could send us back to test 1400. What about a bad one?
TUES: Both our numbers have been hit (SP500 1380 & NDX 1885) expect further downturn. So far.
WEN: Do tomorrows rate cuts get a pop? They did.
THU: Will semi's headfake on bogus upgrades carry the day? No way.
Then again a not so rosy GE report sends us down to test 1330 support.
The bad news from Non Farms on down is starting to pile up elephant size whilst emitting a malodorous stench.
GE, Alcoa & UPS showed that NOTHING is immune. Excepting, at the moment, PnG over 70. Watch the flight to safety, when it dips, everything dips.
Looking at a 3 year chart SP500, 08/16/07 and 01/23/08 highs draw a magical line. More or less, the same pattern on NDX.
The line cuts off the market top, below it shows clear resistance with multiple attempts to clear.
Current rebound since 01/23 has failed for the third time at SP500 1385 - 1395 area making lower highs each time.
Sitting on support, we see either a dead cat bounce or Black Monday.
No help coming from economic reports: CPI, PPI, Building Permits, Housing Starts, Philly Fed; Empire State.
Reporting, not much help either: WaMu, JPMorgan, Wells, Intel, AMD, Capital One, CIT, Merrill Lynch, Citigroup, Wachovia
If the market does not break through and clear this level soon and continues to fall further away, winter will be here very early this year.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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