A Month Later The Tables Are Turning
Hoofy needs to circle the wagons or the charts will turn decisively against him.
On May 15th we looked at charts of the S&P 500 (SPX) and Nasdaq 100 (NDX) on different time frames. We suggested that on a daily basis the SPX was in good technical shape and critical support would not come into play until the 1220 and 1170 areas. The NDX on the other hand looked as if it was rolling over after a long churning period.
Since then things have been moving decisively in Boo's way. Hoofy is gonna have to do some heavy lifting to hold SPX 1245 for a third time and that is the last level of support before the first uber-important area at 1220'sh. The NDX meanwhile is leading the charge on the downside. The sideways trendline from the '04 lows was briefly broken on Thursday and sits 1% below Friday's close. That level also coincides with a 50% retracement of the entire '04 - '06 move. IMHO a move by the NDX below 1530 which is not solidly recouped within a day would (in the immortal words of TV-I Hate-Soccer-JeffMacke) send Hoofy squealing like a scolded chimp. Hoofy would be left with having to protect the 1505 area (downside target for the January/April double top) to preempt calls of a full fledged bear market.
Please understand that I am not predicting moves to the level shown above; I am merely highlighting areas where the critters might do battle.
Meanwhile, with all sorts of inflation road signs to be reported this week, shorter term Minyans may wanna keep an eye of the Pivot resistance and support levels based on Friday's close. See it here for the SPX and NDX.
Have a great week Minyans!!
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