Rough and tumble day as various indices struggle with 50 day moving averages. Lots of false starts, but the DOW eventually closed above that landmark. SPX is just shy, but right at June 2001 high support. NDX/QQQQ have the cleanest charts with a clear bullish bounce near the close at 50% 2006 and 20 dma (QQQQ 41.75 and NDX 1697.50). The ones to watch. Oil of course is the excuse to book profits, but realize that QQQQ and SPY are right below next week's max pain option open interest levels (42 and 129) and we should play around these numbers until then. ES came very close to weekly S2 (1287) so support levels are lined up as it bounced rather strongly from the 1289.25 low. NQ did some tap dancing around its 20 dma (1715), but eventually managed a close solidly above. The SOX is resting right below its 20 dma (505.60) and that is the wild card. Now we just wait for oil to cool off a little. QM/CL backed off from weekly R2 at 69.35, but a move above would set up a test of 70. Until that happens, don't bet on Armageddon scenarios too much.
This entry was posted
on Tuesday, April 11, 2006 at 5:16 PM.
