Retail sales came up stronger than expected, confirming the bullish numbers from Target, JC Penney and Kohl. This in turn is awaekning Fed fears again and giving oil a boost as the consumer seems healthy enough. This news should be considered bullish, especially for electronics, but there is always someone worrying about something. What nonsense. As for Oil, it bounced off trendline support and 50 dma (73.95), but it is within an ascending wedge, so the pattern is ultimately bearish. Watch resistance at 76.125, 50%, should we get past 75, 20 dma. A break above 77 negates the current bear flag and sets up a move to 80.50, but that is not in the cards yet. In fact, failure to get above 75 should be shorted.
NQ (NDX e-mini futures) has support at confluence pivot and 20 dma (1496). Definite line in the sand for NQ is now 1488.75, 61.8% and current 30mn bband support. Bulls cannot afford a third test of weekly S1 at 1486.25.
This entry was posted
on Friday, August 11, 2006 at 6:16 AM.
