YM (DOW futures) closed below trendline support and the bull pennant is history. It was nice while it lasted but with a close below 20 dma, YM looks to visit 10553, 50 dma, in the near future. Things are getting precarious for bulls. Yields won't drop and oil is that pesky little party crasher that just won't go away. If you were managing five billion, what would you be doing now? Chasing stocks higher, or cozying up to those safer yields? In any case, the time has come to book some profits. The SOX dropped 11.75 points and did away with an important Fibonacci level it had just conquered the day before (61.8%, 480.54). NQ (NDX futures) barely survived an attack on the 10 day ema and that one is a must hold on a closing basis in the next trading day (1614.50). ES (SPX futures) is worse off, closing below that important momentum average, which is now resistance (1239). Bulls need to watch their back. We just stay short and hopefully get to enjoy the ride.
click on chart for full size
click on chart for full size
This entry was posted
on Thursday, August 04, 2005 at 6:31 PM.
