COMP closes the May gap and backs off a little. If it gets past 2272 again tomorrow, next step is probably 2289. Gold found a nice footing along with oil and that sector is waking up again. December Gold has resistance at 610, 61.8% retrace June/July, but with all the skeptics out there, we could blast past that to 617/620.
Lots of window dressing as funds keep up indices that feel like they want to go down. It's the same every end of September, you just have to figure out when it starts and stops.
If the DOW does the "all time high" hit of 11750 (let's get it over with so we don't have to hear the press ad nauseum), the end of the journey could be at 11803, 100% projection August. But it's not a done deal yet. They would love to pull it off and get more retail money in the markets, since everyone is pretty skittish these days. The durable goods order is another bearish sign after the Philly numbers. Yes, I know, the surpise home sales. I don't buy that for now. The real hit in housing has not started yet and there is plenty of inventory out there. Don't count too much on that sector rebound. The VIX rose on today's modest move up and that usually indicates a pullback of sorts. It's not a matter of if, but when. For now, I'm targeting NQ 1693 as a short entry if we get a break above 1683 tomorrow. Thursdays can be strong reversal days, so mind your step and don't trust the open.
This entry was posted
on Wednesday, September 27, 2006 at 4:13 PM.
