Market Observations 05/09/08

Resistance: DJIA 13135 (250DMA); SP500 1425 (450DMA); NAZ 2500 (400DMA); NDX 2000

Support: DJIA 12715 (450DMA); SP500 1385 (600DMA); NAZ 2430 (500DMA); NDX 1955 (250DMA)

SP500 1398, gap down to open 1394, dip to 1384, bounce to close 1388. NDX 1967, gap down to open 1950, rise to 1969, fade to close 1960.

Crude over $125... FedEx, #2 U.S. package shipping company,

said Q4 earnings will be below its earlier forecast after surging fuel prices raised costs by at least $100 million more than estimated.

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

The 1st level has been tested and has become support, at the moment.

FRI: we still think this is a suckers rally. Low trading volume and high volume of puts lacks conviction.

WEN: NDX 2000 & SP500 1425 are proving formidable as the markets thin legs get wobbly.

THU: SP500 testing 1400-1405 level again. And losing traction, sitting on support DJIA 450 DMA; SP500 600 DMA; NDX 250 DMA.

Mon: HSBC, IndyMac, MBIA, Radian & PMI Tues: WalMart & Freddie Mac.

Fri: Housing Starts & Permits, all could loosen the markets grip and continue the fall.

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

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