Option Investor
Printer friendly version
Jeff Bailey : 7/20/2008 11:48:35 PM

XLF's official close Friday was $20.67.

Jeff Bailey : 7/20/2008 11:48:13 PM

IWM's official close Friday was $68.88.

Jeff Bailey : 7/20/2008 11:47:48 PM

Weekly, Monthly, Quarterly Index Pivot Matrix found at this Link

Please note that there were some adjustments to final closing prices from Friday afternoon's Market Monitor.

Keene Little : 7/20/2008 10:14:25 PM

Monday's pivot tables: Link and Link

At the end of the day Friday I showed on the SPX 30-min chart a bullish setup for another leg up on Monday morning. Friday's consolidation beneath the downtrend line from June looks bullish for a 5th wave up to complete the rally leg from last Tuesday's low. I've got an upside Fib projection at 1284-1285: Link

Assuming we'll get the move higher on Monday (needs to happen right away and not drop back below 1254), we'll get at least a correction of last week's rally. That's where it will be interesting to see what plays out. The bullish wave count (green) calls for a pullback, likely back to its broken downtrend line for a retest (probably near 1250) and then a continuation higher into the end of the month/early August (likely upside target would be 1320-1325).

But there's a way to consider the impulsive rally from last Tuesday as the completion of a larger a-b-c rally off the July 11th low (called an expanded flat correction where the b-wave makes a lower low). The move up shows several Fib relationships to the leg up from the July 11th low and therefore I consider this scenario (dark red) a good possibility as well.

So the way to play it is with a short entry following the Monday rally leg (assuming we'll get it) and then I'll be watching to see how the pullback develops (impulsive or corrective) to then look for either a long entry (green) or stay short (dark red). That decision may not come until Tuesday. The daily chart shows how each scenario would likely play out (green on 30-min chart is pink on the daily chart): Link

The techs may provide some clues as well. If they keep sinking lower (they significantly underperformed on Friday) then they'll probably be the leader to the downside. NDX daily chart: Link

OI Technical Staff : 7/20/2008 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The Market Monitor has been archived.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