Market Observations 05/02/08

Resistance: DJIA 13050 (30DMA); SP500 1425 (450DMA); NAZ 2490 (400DMA); NDX 2000

Support: DJIA 12865 (400DMA); SP500 1385 (600DMA); NAZ 2400 (600DMA); NDX 1930 (300DMA)

SP500 open 1409, pop to 1422, fall to 1406, close 1414. NDX 1980, gap up to open 1996, fall to 1965, close 1982.

04/21: I smell a downdraft coming at NDX 1950. FRI: I smell consolidation on a Fed pause or 25 bps cut.

The initial pullback after the cut at NDX 1942 was sharp SP500 20 pts; but short lived.

MON: Range bound: magic line resistance at SP500 1400; NDX 1950. Penetrated with authority.

WEN: Tomorrow start of month flows stem the tide? And how, as the DJIA cracked 13K.

THU: Should non farms fall short, expect a backlash. If not, then SP500 1455 and NDX 2020 could be in sight soon.

Non farms decline of 20K, rather than 80K was spun as positive.

04/19: Is the market poised to break through and test the next major resistance lines SP500 1425 & 1455 & NDX 1950 & 2020?.

The market stalled today but made new highs, 1455 & 2020 are not far off. And we still think this is a suckers rally.

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

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