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Keene Little : 12/20/2006 10:53:40 PM

Thursday's pivot tables: Link and Link

OI Technical Staff : 12/20/2006 9:59:59 PM

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Jeff Bailey : 12/20/2006 8:52:26 PM

As long as I've got power, I'll be here tomorrow morning.

Still a snow'n and still a blow'n here in Denver.

Jeff Bailey : 12/20/2006 8:51:29 PM

YM Pivot Matrix for tomorrow at this Link ... Almost a mirror image of what we were looking at for 12/19/06. Very tight range of trade today.

YM 12,553 +9 from settlement, +1 from close and snug as a bug in a rug at DAILY Pivot.

Jeff Bailey : 12/20/2006 8:33:50 PM

EIA's This Week In Petroleum Link

Jeff Bailey : 12/20/2006 8:30:00 PM

Index Pivot Matrix for tomorrow at this Link

I'm a bit skeptical of today's H/L/C for the TRIN as QCharts has been having some data feed problems, but the markets did seem to mirror today's lower open near 0.45 and trend higher to the close.

Jeff Bailey : 12/20/2006 8:13:00 PM

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

Jeff Bailey : 12/20/2006 7:51:40 PM

Closing Internals found at this Link

Jeff Bailey : 12/20/2006 7:41:22 PM

Closing U.S. Market Watch found at this Link

Jane Fox : 12/20/2006 4:17:41 PM

Economic Reports for tomorrow include

8:30a.m. Initial Jobless Claims: For Dec 16 Wk. Expected: +15K. Previous: -20K.

8:30a.m. 3Q Final GDP. Expected: +2.2%. Previous: +2.2%.

8:30a.m. 3Q Corp. profits, final. Previous: +4.6%.

10:00a.m. Nov Chicago Fed Natl Activity Index. Previous: -0.31.

10:00a.m. Nov Conference Board Leading Indicators. Previous: +0.2%.

12:00p.m. Dec Philadelphia Fed Business Index. Previous: 5.1.

Keene Little : 12/20/2006 4:13:35 PM

ES looks like it will come to rest on its uptrend line from December 1st, at 1434.50. It briefly broke below this line Tuesday morning but has held above it. Gap down tomorrow? That's my vote and I've already sent in my ballot.

Keene Little : 12/20/2006 4:03:00 PM

Bears keep in mind here--the DOW needs to drop below 12440 before any technical damage is done from an EW perspective. Today's move down could turn into just a 3-wave pullback that leads to another run higher. Any move back above this afternoon's high at 12488 (cash) would suggest another rally leg is in progress. Place your stops just above that level. SPX is closer to giving a good technical sell signal if it drops below 1422 (cash). A rally back above 1426 would suggest at least a larger bounce in progress.

Jane Fox : 12/20/2006 4:01:44 PM

Ok large caps are going south and small caps are heading north.

Keene Little : 12/20/2006 3:58:29 PM

Need a quick buy program to bump the DOW back into the green. Gotta get at least +1.7 on the day.

Jeff Bailey : 12/20/2006 3:56:41 PM

March Copper (hg07h) did break below $3.00. $2.97 -1.65%

Jeff Bailey : 12/20/2006 3:56:00 PM

Dollar Index (DXY) went out at 83.53 (QCharts' Daily Pivot). Didn't get a WEEKLY Pivot trade today.

Keene Little : 12/20/2006 3:54:49 PM

Have fun Jeff. We're shoveling mud here in Seattle.

Jeff Bailey : 12/20/2006 3:54:36 PM

Will update things later this evening.

RHT $18.79 +2.28%

KGC $11.79 -1.66%

SLB $64.96 -1.23%

LAB $9.93 +2.90% and NEM $45.95 -2.71% (not holding this day trade overnight. Was stopped right here)

Jeff Bailey : 12/20/2006 3:52:05 PM

I'm going to go to the grocery store and shovel some snow. Starting to get "white out" here in Denver and could get 2' by tomorrow morning.

Jeff Bailey : 12/20/2006 3:50:52 PM

YM long exit alert 12,549

Keene Little : 12/20/2006 3:50:37 PM

Now if that millionaire, who's interested in picking up pennies off the sidewalk, is worried about where to put his money and has it stuffed under his mattress at the moment then we of course know that he actually lost money today due to inflation which I believe is higher than that being reported to us.

In fact, if we use a 5% annual inflation rate (hey, my number is just as good as theirs) then the DOW loses 1.7 points in value per day. So if the DOW closes up less than 1.7 points but is in the green then it can be declared a new record closing high but in fact would be a loss for those holding the DOW. See, this is what happens when I get bored.

Keene Little : 12/20/2006 3:40:31 PM

Of course if they can just hold the DOW right here into the close they'll be able to declare once again a new record closing high for the DOW. But that's a little bit like a millionaire picking up a penny off the sidewalk and declaring himself to be a richer person. True but misleading don't you think?

Keene Little : 12/20/2006 3:32:28 PM

There's just no energy on either side of this market. I have this sense they're going to hit it with a couple of buy programs in the last 30 minutes just to make sure the DOW closes in the green. But I don't have much to base that on, except fear since I'm short :-)

Jeff Bailey : 12/20/2006 3:27:11 PM

YM finger on the button alert 12,557 for the rest of the session.

Jeff Bailey : 12/20/2006 3:17:11 PM

YM long entry alert here at 12,557, stop 12,449 and target 12,589

Jeff Bailey : 12/20/2006 3:13:29 PM

03:00 Internals found at this Link

Keene Little : 12/20/2006 3:05:43 PM

So far these guys are doing a remarkable job at holding the market steady. Flat on the day is a win in the bulls' column. With an hour to go we'll see if the bears can make a statement or not.

Jeff Bailey : 12/20/2006 3:02:13 PM

03:00 Market Watch found at this Link

Keene Little : 12/20/2006 3:01:18 PM

Even though the VIX has dropped to near 10 again, those Feb 12.50 calls that Jeff had recommended at $1.75 (last week?) have bumped up a little and are 1.85 x 2.00. So VIX is down but call premium is up. Perhaps juicing the premium a little in anticipation for what's next? Could be.

Jeff Bailey : 12/20/2006 2:56:00 PM

Biggest 2-minute interval volume of the day on NEM cam on that decline to $45.88. Day trade long should still exit $45.95 in my opinion. "Dynamic" 19.1% moves lower to $46.14.

Jeff Bailey : 12/20/2006 2:53:48 PM

NEM $45.95

Jeff Bailey : 12/20/2006 2:52:15 PM

KGC $11.86 -1.08% ...

Jeff Bailey : 12/20/2006 2:51:52 PM

My best guess here is that DXY is testing WEEKLY Pivot.

Jeff Bailey : 12/20/2006 2:50:54 PM

Day trade long stop alert ... NEM $45.95

Keene Little : 12/20/2006 2:42:42 PM

I like to reduce my risk as soon as I can even if I risk whipsaws in the early part of the trade. I just can't see a reason to risk more than you have to. It comes back to the old saying "it's better to wish to be in a trade you're not in rather than wish you were out of a trade that you're in."

Keene Little : 12/20/2006 2:36:50 PM

If you shorted that bounce I'd pull my stop down now. Put it just above the recent bounce highs. This should continue to new daily lows if we made an important high this morning. Another rally leg up and I'd want to be out of the way.

Jeff Bailey : 12/20/2006 2:34:31 PM

NEM $46.01

Keene Little : 12/20/2006 2:30:47 PM

If shorting ES here I'd want my stop at 1440.

Keene Little : 12/20/2006 2:28:46 PM

After breaking below the uptrend line off yesterday's two lows, ES just bounced back up for a retest. It also achieved in its bounce two equal legs up at 1437.75. Interesting setup here and one I'd recommend for a short play if you're interested.

Jane Fox : 12/20/2006 2:25:15 PM

I have all the faith in the world that the rescue team will arrive and not let the bears get too much out of line.

Keene Little : 12/20/2006 2:25:05 PM

Looks like more of an effort to hold the DOW up again. Either more rotation into the bluest of the blue chips in preparation for unloading after the first of the new year (very likely) or else just an effort to hold the most widely reported index in the green for yet another record close (also very likely). Gotta keep the sheeple interested in the bull party so that they take all the inventory handed them by smart money.

Jane Fox : 12/20/2006 2:22:27 PM

I quit following Nat Gas in my morning lookup (I replaced it with US$) but I just took a look at it and currently at 6.79 where 6.28 is yearly lows. This has got to have an affect on the energy sector.

Keene Little : 12/20/2006 2:20:30 PM

The bonds have really gone dormant. The 10-min chart for the past two days looks like a sound wave on an oscilloscope where the sound wave just dies off to a flat line.

Keene Little : 12/20/2006 2:16:25 PM

If we have the start of something more bearish then ES 1438 should remain resistance. Any bounce back above that level would probably have me getting flat again. I'm not sure about the upside enough to want to get long but a stronger bounce would have me questioning the downside. In this environment I think it would be better to be safe than sorry (that would be flat).

Jeff Bailey : 12/20/2006 2:09:25 PM

Newmont Mining (NEM) $46.13 -2.32% ... day trader's 5-minute interval chart at this Link

Jane Fox : 12/20/2006 2:03:57 PM

Does anyone else find it odd that we are not getting the +800 and +1000 TICK readings lately? We had one +800 yesterday, the first one in 3 days and none today.

Jeff Bailey : 12/20/2006 2:03:52 PM

Bullish day trade long alert ... for shares of Newmont Mining (NEM) $46.14 -2.32% ... stop goes $45.95, target a bounce back to $46.63.

Keene Little : 12/20/2006 1:55:09 PM

The DOW needs to drop below 12440 before the bears can start feeling a little more confident and the bulls a little more worried. Until that level is broken the pullback today is only a correction to the rally from yesterday's low.

Keene Little : 12/20/2006 1:49:20 PM

ES dropping below 1435 is an important step for the bearish pattern. The important levels are 1434.75, yesterday morning's bounce high and then 1429.25, the pullback to the noon low yesterday. The 1434.75 level is wave-1 in the move up from yesterday's low and it can't be violated in an impulsive move up.

I use cash for this kind of analysis and while ES dropped briefly below that 1434.75 level, SPX cash has not. That makes it possible that this pullback is still part of the 4th wave correction in which case we haven't seen the final rally leg yet. SPX needs to drop below 1422.66. For a bearish play here I'd really like to see SPX drop below 1418 and most especially 1415. I'm making an early call about a top to the rally and it takes a break below those lower levels before I'll have a better idea whether I'm correct or not.

Jeff Bailey : 12/20/2006 1:45:00 PM

Sector Bullish % Status Changes ... Dorsey/Wright & Assoc. Transports/Non Air reversed lower from "bull confirmed" to "bull correction" status.

Wall Street reversed from "bull confirmed" to "bear confirmed"

Keene Little : 12/20/2006 1:38:52 PM

But so far I must say I'm liking the drop. I've taken another swipe at the bulls running by and hoping I don't get gorged and kicked back to the curb again.

Jane Fox : 12/20/2006 1:38:33 PM

So much for the bulls lurking in the shadows.

Notice the TRIN has been of no use today? It has stayed neutral all day and why I put the least amount of emphasis on this internal. Link

Keene Little : 12/20/2006 1:37:45 PM

If you're playing the short side here just keep reminding yourself that there will be an effort to not let this market drop. The junior traders are probably at the helm now with strict orders: "For the sake of your job, do not let this market drop. I want profits into January before we sell. Understood?" And with that the senior traders helicoptered off to the Hamptons and the Cape. Buy programs may hit at any time in a desperate move to get the markets jammed higher again.

Jeff Bailey : 12/20/2006 1:15:57 PM

01:00 Internals found at this Link

Keene Little : 12/20/2006 1:14:07 PM

Jane, I have to smile at your 12:51 post because that's exactly what I've been thinking. I keep thinking my bearish bias right here is going to bite me in the butt again. That is of course the psychology game that most will deal with here and why we'll continue to see the dips bought for a while to come yet.

Bears and bulls have become convinced that the market will never have a serious pullback again, ever. It's why I'm thinking there's more than a decent chance we could see a serious sell off this month if selling catches both sides by surprise and there's a mad scramble to sell.

Jeff Bailey : 12/20/2006 1:04:36 PM

Newmont Mining (NEM) $46.26 -2.05% ... has moved into its up-gap from 11/29-11/30

Jeff Bailey : 12/20/2006 1:02:26 PM

01:00 Market Watch found at this Link

Jeff Bailey : 12/20/2006 12:59:51 PM

It's a tough trade (bull,or bear), no question about it.

Jeff Bailey : 12/20/2006 12:58:19 PM

Dollar Index (DXY) 83.54 +0.30% ... yet to trade its WEEKLY Pivot today.

Jeff Bailey : 12/20/2006 12:57:36 PM

StreetTracks Gold (GLD) $61.58 -0.35% ... WEEKLY Pivot right here at $61.54.

Jane Fox : 12/20/2006 12:51:08 PM

The bulls are just teasing the bears and letting them think they are getting stronger but I see them lurking in the shadows and are ready to pounce.

Jeff Bailey : 12/20/2006 12:50:09 PM

Kinross Gold (KGC) 11.88 -0.91% ... at DAILY Pivot.

Analysis "has to be" that after seeing dollar at WEEKLY S1 and KGC having NOT traded its Weekly R1 ($12.25) sentiment a bit more BEARISH KGC. (as it relates to pure dollar/gold relationship)

Jeff Bailey : 12/20/2006 12:48:00 PM

Dollar Index (dxy) 83.50 +0.25% ... now at DAILY Pivot.

Jeff Bailey : 12/20/2006 12:43:29 PM

Then on the "right flank" you've got the NYSE Summation ($NYSI) Link ... roughly 3,000 troops here too.

Jeff Bailey : 12/20/2006 12:41:40 PM

NASDAQ Internals ... I don't like to use the "war" analogy, but do you sense what the pressure from the $NASI and NASDAQ NH/NL action?

I think of 3000 bullish troops ($NASI) and recently, 500 or so have suffered injury.

The "Generals" or the BULLISH leadership (NH/NL), well, it is as if they are kind'a looking around, wondering if they should still lead a charge, or begin a retreat.

Keene Little : 12/20/2006 12:37:57 PM

No sooner posted and we see ES get slammed below 1438. YM's topping pattern could be important here as it tells me the rally could very well be toast at this point. In other words, no Santa Claus rally. Done, finit, kaput, stick a fork in it, we're done. But that's a very very early call. It takes a drop to new daily lows to convince me that that's a likely possibility. In the meantime we could still be consolidating before getting another rally leg.

Jeff Bailey : 12/20/2006 12:35:12 PM

BULLS that currently hold EXTENDED stocks that are at/near 52-week highs.

Think, or be alert to tax gain selling and implication in early part of January.

Jane Fox : 12/20/2006 12:34:02 PM

All I need to see is that blue line's tajectory to tell me who has the ball. Link

Keene Little : 12/20/2006 12:33:52 PM

While YM has chopped slightly higher this morning, giving me the impression it's in an ending pattern, ES has chopped sideways and gives me the impression of a continuation pattern. The longer ES chops sideways the more bullish it will appear. Another move up to 1440.50 followed by a pullback to another higher low would set up another rally leg in that one. If that happens I'd be looking to an upside Fib target at 1445.50.

That would likely push the DOW higher than its Fib target and between just those two patterns it's not very clear at the moment. But if ES drops below 1438 that would suggest to me that the bullish consolidation pattern is not in play.

Jeff Bailey : 12/20/2006 12:33:30 PM

LAB ... IF we were to close here at $10.00 on the last day of December and this month's high/lows were to stay the same, LAB MONTHLY Pivot levels for January would be ... $8.67, $9.34, Piv= 10.22 $10.89, $11.77.

Jeff Bailey : 12/20/2006 12:29:32 PM

What do you think? Is my $11.50 bounce target too bullish? Maybe lower it to $11.35?

Jeff Bailey : 12/20/2006 12:27:36 PM

Labranche (LAB) $9.98 +3.41% ... now a 60-minute interval chart Link

Jane Fox : 12/20/2006 12:21:35 PM

* Nasdaq most active stocks: RBAK SIRI ORCL SUNW INTC
* NYSE most active stocks: F PFE GE TWX HPQ

Jeff Bailey : 12/20/2006 12:21:01 PM

Labranche (LAB) $9.97 +3.31% ... Same daily interval bar chart shown the other day, but now I add a PINK retracement to define the recent relative high of $12.05. My bull target for the bounce is $11.50. Link

Jeff Bailey : 12/20/2006 12:04:46 PM

11 calendar days left in the year after today.

Jeff Bailey : 12/20/2006 12:02:51 PM

Labranche (LAB) $10.00 +3.62% ... 19.1% retracement of 04/21/06 high close to 09/16/06 low close.

Jeff Bailey : 12/20/2006 11:59:09 AM

Ford (F) $7.30 +1.67% ... here's a 60-minute interval chart Link ... with additional "tax loss sell" thoughts.

Jane Fox : 12/20/2006 11:56:16 AM

The reason we are stalled is because the AD line is falling and the VIX is climbing while the AD volume continues to make new daily highs. I still think the markets will see new daily highs at SOME point today.

Jeff Bailey : 12/20/2006 11:50:06 AM

On Ford (F) ... take a retracement from its 07/20/06 low close of $6.19 and a high close of $9.19 from its 09/13/06 close.

Jeff Bailey : 12/20/2006 11:47:08 AM

Ford Motor (F) $7.29 +1.53% ... atop the list of most actives again today. Bumping against its WEEKLY R1, WEEKLY Pivot $7.08. Nice looking reverse h/s pattern on 60-minute interval chart with neckline right here.

Jeff Bailey : 12/20/2006 11:35:07 AM

Labranche (LAB) $9.94 +3.00% ... comes to WEEKLY Pivot ($9.95)

Jane Fox : 12/20/2006 11:30:38 AM

WE have a major battle going on at daily highs which is usually won by the bulls. Major battles at daily lows are usually won by the bears.

Keene Little : 12/20/2006 11:29:50 AM

Here's what I'm watching on the DOW. If we get another push up to a minor new high now it could be the end of the rally. A drop back down below DOW 12473 would tell me the rally is finished but look for another push to just above 12500 and then a drop. It's possible the top of this rally will be the end of wave-3 instead of wave-5 which won't be known until we get a pullback started. Link

Jeff Bailey : 12/20/2006 11:26:55 AM

U.S. Oil Fund (USO) $54.06 +0.11% ... did "spike" to $54.39 on the EIA data. Again... $54.50 is a level that has tended to be a level of resistance.

Jeff Bailey : 12/20/2006 11:25:26 AM

I forgot to "roll" my oil futures symbol in the US Market Watch to the February contract (cl07g) $63.52 +0.09% ...

Jane Fox : 12/20/2006 11:24:17 AM

ES is certainly taking its sweet time to make new daily highs.

Jeff Bailey : 12/20/2006 11:21:58 AM

QCharts has been having some problems with their TRIN data feed. Today they are having some problems with their NYSE Adv/Dec/Unch (Index:ISSU) data feed.

Jeff Bailey : 12/20/2006 11:18:20 AM

11:00 Internals found at this Link

Note: Current NASDAQ 10-day NH/NL ratio would show a 3-box reversal to 70.00%. After yesterday's NH/NL intraday inversion, another kickback with 5-day NH/NL ratio edging back up.

Keene Little : 12/20/2006 11:11:59 AM

For the move up from yesterday's low, the current move to a new high for the DOW counts well as the 5th wave. This 5th wave equals the 1st wave at DOW 12500.7. That's the first level I'd watch for a failure of the rally.

Keene Little : 12/20/2006 11:09:43 AM

The Fibs I have for the DOW line up at 12513 so it will be interesting to see what happens if that level gets tagged.

Jane Fox : 12/20/2006 11:09:36 AM

WASHINGTON (MarketWatch) -- The number of applications for mortgages at major U.S. banks fell by 10.2% on a seasonally adjusted basis last week from the previous week as mortgage rates rose, the Mortgage Bankers Association reported Wednesday.

Mortgage applications -- including loans for purchasing a home and for refinancing a current loan -- are up 13.9% compared with the same week a year ago. Application volumes had been down more than 10% on a year-on-year basis for most of the year.

Application levels are very volatile around the holidays.

Applications for purchase loans dropped 5.9% last week from the highest level since January the previous week.

Applications for refinancing loans fell 14.6% from a 15-month high the previous week. Refinancings accounted for 50.8% of all applications, down from 52.6% the previous week.

The average rate for a 30-year fixed-rate loan rose to 6.10% from 6.02%. The average rate for a 15-year fixed-rate loan, a popular refinance option, rose to 5.82% from 5.75%.

Jane Fox : 12/20/2006 11:07:13 AM

ES tags its daily highs which are its overnight and previous day highs. I think it will break through this time.

Keene Little : 12/20/2006 11:04:58 AM

The DOW keeps inching higher but it's forming a very small ascending wedge this morning. It's a very short term pattern and may not actually be a wedge but if it is then we should see a failure soon and a quick drop to new daily lows. Just a heads up in case you're long. I have some Fibs for the rally projecting to just above DOW 12500 so watch for a potential ceiling there.

Jeff Bailey : 12/20/2006 11:02:58 AM

11:00 Market Watch found at this Link

Jane Fox : 12/20/2006 11:01:13 AM

* NYSE advancers outnumber decliners 21 to 10
* Nasdaq advancers outnumber decliners 2 to 1

Jeff Bailey : 12/20/2006 11:00:41 AM

You could lay a straightedge ono the YM (rising from this morning's low) and looks like somebody's walking their bid up the scale.

Jeff Bailey : 12/20/2006 10:57:33 AM

US Dollar Index (DXY) 83.27 (30-minute delayed) ... did trade its WEEKLY S1 (83.24) overnight with low tick of 83.21.

No sign of "panic" from the YG07G $623.40 -0.30% in last night's trade with high of $628.00 just prior to this morning's regular session open.

Jeff Bailey : 12/20/2006 10:43:54 AM

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

Jane Fox : 12/20/2006 10:38:51 AM

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute reported a drop of 4.3 million barrels in crude supplies for the week ended Dec. 15. The Energy Department had reported a fall of 6.3 million. Motor gasoline supplies were down 300,000 barrels, the API said, but the government's reported a rise of 1 million. Distillate supplies were down 1.4 million barrels, the API said, contrary to the 1.2 million-barrel rise reported by the government.

Jane Fox : 12/20/2006 10:34:17 AM

* Crude supply down 6.3 mln brls last week: Energy Dept.
* Distillate supply up 1.2 mln brls: Energy Dept.
* Gasoline supply up 1 mln brls: Energy Dept.

Jeff Bailey : 12/20/2006 10:24:36 AM

IMF: UK GDP Expected To Be Robust in 2007

IMF:Further UK Monetary Policy Tightening May Be Needed

IMF:UK Fiscal Deficit Seen Dn At 1.5% Of GDP By 2011-12

IMF: UK GDP Growth Seen At 2.75% In 2007, 2008

Jane Fox : 12/20/2006 10:22:51 AM

ES stalled right at its resistance and has not been able to break through yet, however, the internals are telling me it will.

Jeff Bailey : 12/20/2006 10:18:01 AM

President Bush: US Needs To Increase Size of Army, Marines

DJ- President George W. Bush said Wednesday that he's decided the U.S. needs to boost the size of its military to sustain its effort in the war on terror.

"I'm inclined to believe we need an increase in the permanent size of both the United States Army and the United States Marines," Bush said at a press conference.

The president said he's asked new Defense Secretary Robert Gates, who arrived in Baghdad earlier Wednesday, to report back as quickly as possible on how to implement such an increase. He also said he would listen to input from members of Congress.

"As we develop the specifics of the proposals over the coming weeks, I will not only listen to their views, we will work with them to see that this becomes a reality," Bush said.

Bush first detailed his plans to enlarge the military in an interview Tuesday with the Washington Post. The president, who charged new Defense Secretary Robert Gates with crafting an enlargement plan, acknowledged to the newspaper that the wars in Afghanistan and Iraq have stressed the nation's armed forces.

But amid warnings from top military commanders that current demands could ultimately "break" the active-duty army, he didn't say how large he would like the military to become. The army currently has around 507,000 active-duty soldiers, up from 482,000 in 2001.

Jeff Bailey : 12/20/2006 10:12:47 AM

President Bush: Supports Minimum Wage Boost Paired With Tax Relief

Keene Little : 12/20/2006 10:11:12 AM

If ES is able to press higher then I'll be watching the Fib projections that I have for this move at 1444-1445.50. That's the area that could mark the end of this rally if it pushes higher this morning.

Jane Fox : 12/20/2006 10:11:05 AM

I'm telling you, don't fool with these two. Link

Jane Fox : 12/20/2006 10:09:29 AM

I challenged myself to guess the AD line without looking and I guessed over +1000. It is +1002 with a daily high of +1091.

Jeff Bailey : 12/20/2006 10:09:21 AM

Iran, China's CNOOC Sign $16 Billion Gas Deal

CEO $89.45 +0.16% Link ...

Jane Fox : 12/20/2006 10:07:48 AM

VIX and AD volume are bullish and the TRIN neutral so internals are in sync. Link

Keene Little : 12/20/2006 10:07:24 AM

If ES continues to find resistance at the 1440.50 level then we might continue to consolidate between 1436 and 1440 for the better part of today.

Jane Fox : 12/20/2006 10:05:28 AM

ES is now tagging its overnight and previous day high so I would expect to find resistance here.

Jeff Bailey : 12/20/2006 10:01:54 AM

10:00 Market Watch found at this Link

Jane Fox : 12/20/2006 9:55:06 AM

YM has broken its overnight lows and ER has broken its overnight highs. HMMMM Link

Jane Fox : 12/20/2006 9:51:20 AM

Look at how the gold market has respected the 625-629 zone using it as resistance then support now as resistance again. Once gold closed below this support I closed my long position and if it closes above it I will open another long position. Link

Keene Little : 12/20/2006 9:49:54 AM

They may continue to hold up the major averages but a look under the hood of this market is showing me some leaks in water hoses and cracked fan belts. This market is overheated and ready to blow tubes.

Keene Little : 12/20/2006 9:47:41 AM

The Trannies are getting pummeled this morning, down 1.2% here. This is not a bullish sign.

Jane Fox : 12/20/2006 9:45:38 AM

* NYSE advancers outnumber decliners 3 to 2
* Nasdaq advancers outnumber decliners 7 to 5

Jane Fox : 12/20/2006 9:44:19 AM

ER is the only market to break its PDH so far. Link

Keene Little : 12/20/2006 9:44:13 AM

ER making new highs above yesterday's so there's certainly some renewed interest in the techs and small caps. Those who believe we'll get the Santa Claus rally are positioning for it.

Jane Fox : 12/20/2006 9:43:01 AM

AD line is now to new daily highs as well at +756

Jane Fox : 12/20/2006 9:42:36 AM

VIX to new daily lows and AD volume to new daily highs is all I need to tell me who has the ball.

Keene Little : 12/20/2006 9:42:28 AM

NQ is getting punched to the upside righ tnow but ES and YM are not exactly joining in its party. I'm not so sure I'd trust that move.

Jane Fox : 12/20/2006 9:33:56 AM

But I do see the VIX below its PDL and that is enough to give the ball to the bulls.

Jane Fox : 12/20/2006 9:33:16 AM

Ad line is +377 and AD volume above 0 and climbing. Mostly neutral open.

Keene Little : 12/20/2006 9:22:47 AM

We have some mixed signals from overnight action. ES and YM tested yesterday's highs with a slow and steady climb off yesterday's close. Since 5:00 AM they've both pulled back steadily, giving up most of their overnight gains. ER surpassed yesterday's high but NQ couldn't make it that high. ER has since given up more than NQ. Just not much to go on from all that except that it was generally bullish.

We might continue to consolidate within yesterday afternoon's range. After yesterday's 3-wave bounce I'm hoping we'll get some early answers as to what to expect next. I see the possibility for a minor new high (DOW 12512 is a good Fib target based on the wave pattern of the move up) or else we've seen the end of the bounce and it will be the start of another leg down today. If we consolidate first then the new high becomes the higher probability.

Jane Fox : 12/20/2006 9:08:47 AM

The charts of the US$ and Gold show quite clearly the relationship between the two, or should I say the indirect relationship. You can also see how gold and oil have a direct relationship but certainly not as strong. Link

Jane Fox : 12/20/2006 9:04:37 AM

Good morning everyone. Equity markets basically tagged their PDHs and found resistance (ER overshot its PDH and NQ did not quite make it all the way) in a very ordinary overnight session. Link

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