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Keene Little : 5/18/2008 11:36:16 PM

Monday's pivot tables: Link and Link

The daily candles for each of the four indices on Friday was a bearish hanging man or more bearish dragonfly doji. With these up against resistance with waning buying momentum it makes it look like a good setup for a short play. Equity futures are only down marginally this evening so it's anyone's guess how the market will open. I would expect at least a brief pop higher that might fail. A down open and a down day would confirm the bearish reversal candlestick pattern.

The DOW and SPX daily charts show there's a little more upside potential if we get a positive day. If they can get above their respective 200-day moving averages I see the possibility for DOW 13250 and SPX 1448 (although there are layers of resistance between here and there:
SPX: Link
DOW: Link

NDX shows a little more upside potential to 2052 to close the gap on Jan 4th and back up to the top of its parallel up-channel from March: Link . The RUT doesn't look like it has any more room to the upside as it's jammed up against the top of its rising wedge, Jan 4th gap close, 50% retracement of the October-March decline and its 200-dma, all packed into the 745-748 area. But if it can through all that then there's a Fib projection just under 762: Link

On Friday I mentioned we should be following the money and right now the chart of the banks (BIX) says it's going to head lower: Link . If the bulls can turn this one around and get above its 100-dma at 253 then I'll turn more bullish the banks, and the broader market, but not until.

OI Technical Staff : 5/18/2008 9:59:59 PM

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