Market Observations 07/04/08

Resistance: DJIA 11500 (1100DMA); SP500 1295 (1100DMA); NAZ 2310 (900DMA); NDX 1890 (450DMA)

Support: DJIA 11220 (1300DMA); SP500 1255 (1300DMA); NAZ 2230 (1200DMA); NDX 1810 (650DMA)

SP500 open 1262, rise to 1271, dive to new low 1252, bounce to close 1262. NDX 1815, gap up to open 1823, rise to 1832, plunge to new low 1801, bounce to close 1816.

NDX & SP500 put in new year lows; RUT & MID punished this week plunging 4 to 1 vs SP500.

Ditto last week: we may bounce, but it will be shortlived. WEN: two words; limitless downside. Two more words; get out.

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

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