Keene Little : 5/28/2007 11:37:00 PM
I hope everyone had a great 3-day weekend. Now we'll get to see how invigorated the market participants are on Tuesday.
Some late posts from Friday:
Tuesday's pivot tables: Link
Roadmap updates (30-min charts):
For the DOW, two equal legs up for its bounce off Thursday's low is at 13542 which is close to a 62% retracement of last week's decline. Link
This would make a good short play setup but be aware that the minimum bounce level has already been achieved. A drop below 13450 is the heads up and a break below 13424 means stay on the short side.
Oftentimes wave-C (the 2nd leg up in the bounce from Thursday's low) will form an ascending (or descending wedge in a pullback correction to a rally) with the requisite 5 waves but they'll have overlapping highs and lows. This DOW 5-min chart shows such a possibility and it tagged the Fib projection for wave-C = 62% of wave-A (for a truncated finish, which is a lower high for the end of wave-C). This one has me thinking it's ready to drop first thing Tuesday. Link
I'm showing the upside potential for the bounce in SPX to get up to 1522 although I'm currently having my doubts that it will get that high. A drop back below 1510 would be a bearish heads up and a drop back below 1505 would suggest the bounce has finished. Link
Two equal legs up for NDX is at 1901.91 and the 62% Fib projection for the 2nd leg up is at 1894.10. I'm showing price will get an early bounce on Tuesday and top out at the broken uptrend line for a kiss goodbye near 1895. Just be aware of the possibility that the corrective rally might have topped out Friday afternoon and we'll see some selling out of the gates. Link
The RUT maintains upside potential to 836-837 by its Fibs and trend line. This one actually looks like a very nice setup to get short if it rallies to that level. Link