Option Investor
Archive
HAVING TROUBLE PRINTING?
Printer friendly version
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 and 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

OI Technical Staff : 5/28/2007 9:59:59 PM

The Market Monitor has been archived.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

Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.

Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in most cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.

Market Monitor Archives