Option Investor
Archive
HAVING TROUBLE PRINTING?
Printer friendly version
Keene Little : 7/6/2008 10:10:00 PM

Monday's pivot tables: Link and Link

At the end of the day Thursday, with so much of the morning bounce being given back into the end of the shortened day, I thought we might see another low (or test of the low) before heading higher. Heading higher is of course the big question. The NDX 60-min chart shows a continuation lower on Monday before finding potential support around 1795 (April 16th gap fill) or lower to a Fib projection near 1772: Link

In between those levels is the April low near 1776 and the uptrend line from October 2002 that's near 1786. The daily NDX chart shows how a little dip (relatively speaking) could be followed by a week-long rally that takes NDX back up to the top of its down-channel: Link . This is of course speculation but it would fit the wave pattern of the move so far.

At the end of the day Thursday I was thinking we might see SPX go sideways for about a week and thought we had started the first leg up in what could turn out to be a sideways triangle pattern. But with the futures down on Friday and staying down Sunday night (but still holding above Thursday's low) we might see a continuation lower on Monday (as depicted for NDX). But if Thursday's lows hold then prepare for potential chop and whipsaw consolidation this coming week. SPX 60-min chart: Link

A rally above 1273 that stays above would suggest a larger upward correction, as depicted in pink on the daily chart, which could see SPX heading up to the 1350 area by the end of the month: Link . Otherwise the current price pattern supports the idea that we'll see the market continue to stair-step lower into the end of the month (following the potential sideways consolidtion this week) before seeing a much bigger bounce.

OI Technical Staff : 7/6/2008 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The Market Monitor has been archived.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