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Friday Morning Update:
90 Minutes in to the day the 3-day trends have
turned down on the Dow, SPX, NASD, and NDX. They have not turned down on the
NYSE or the Theoretical Dow, (13,811 needed, 13,827 is the theoretical low so
far, will probably be reached.) Total breadth peaked at +800 and quickly fell to -1150.
The Dow and SPX broke the long uptrend lines in place from the 9/10 lows as the market traded off into a somewhat normal 10:30 AM low. Watch for
an attempt to push back up to kiss
the uptrend lines good bye, though a touch is not necessary. It is still the end of the
quarter and odds are the indices close plus or minus a few tenths of a percent.
The main line of concern is the character of the trading envionment will change sharply next week with the change of the quarter.
For the Dow, now that 13,870 has been reached the next level
is 13,820.
The BIX is showing additional weakness while the HUI is
seeing a strong recovery as the Dollar moves lower.
The SPX dipped but did not reached the 1524 mark listed as
an exit point for the SSO. After the morning pop failed to gain any upward
traction, I would have been a bit trigger happy on the SSO exit. Let’s go ahead
and close the SSO long ~95.40 as I type. If it pushes higher over the next one to three days we will look for a short entry point.
NVTL fell below our $23 stop for an 81 cent loss
BBD pushed up to a high of 29.65, well above our target price of 29.50 enabling
us to lock in a solid 4 point gain.
Have a great weekend
Jim
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