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Marc Eckelberry : 8/21/2006 3:28:04 AM

This rally has plenty more upside, just short the short term overbought but get ready to go long at various support levels. Or just patiently wait for a long setup, because that is the overall trend now that SPX is solidly back above 1285. First support will be NQ 1564/1569, (watch that trendline) and below that the QQQQ gap close at 37.70. 50 dma is must hold for everyone, including COMP/QQQQ/NQ and SMH. Watch those weekly pivots on Monday trading. The odds of hitting weekly s1 or r1 on Monday are about nil, since the range was quite large last week.

Jeff Bailey : 8/20/2006 11:11:35 PM

Index Pivot Matrix for Monday at this Link

Keene Little : 8/20/2006 11:02:35 PM

I had mentioned late Friday that the push higher all day from the early morning low looked like it could be the 5th wave of the rally from Aug 11th. It has negative divergences against the high on Aug 17th and reached an initial Fib target of 1307.50. There is an upper Fib target of 1314.25 so trying a short here could be tricky. A break of its uptrend line at 1303.75 would suggest the rally is over. Link

IMO, last week's rally had opex and the mega banks' trading teams written all over it. It was a manipulation higher in order to get the shorts to cover and make the manipulators billions in profits. If true we should see a big correction this week. A 5th wave up on Friday (if it's complete) sets up the big correction.

When I look at the RUT I see a little more upside potential so I'm not over anxious to get short but I am watching for my entry very carefully here. YM looks like it could get a small pullback and then a final push higher. It has an initial Fib projection target at 11442. So hopefully we'll get a little more upside action which should then set up a nice short entry.

Jeff Bailey : 8/20/2006 10:26:35 PM

Current OPEN MM Profiles that I've made at this Link

Jeff Bailey : 8/20/2006 10:26:05 PM

Friday's Closing Internals found at this Link

Jeff Bailey : 8/20/2006 10:25:37 PM

Friday's Closing U.S. Market Watch found at this Link

Keene Little : 8/20/2006 10:06:46 PM

Monday's pivot tables: Link and Link

OI Technical Staff : 8/20/2006 9:59:59 PM

The Market Monitor has been archived. You may view it and any previous days here: Link

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