NQ closes the July 3rd gap at 1601.75 and pushes up to weekly R1. That bearish ascending wedge (see 30 mn chart)is getting pretty narrow with a possible upside close to June 30 high of 1611.25. Resistance above that on a breakout is 1620, but I'm not so sure we will get that far. QQQQ hits 39.48, close to my upside target for this rally. SMH (semiconductors) has not confirmed the new QQQQ high, so I would start thinking defense at this point. NDX found resistance at 50% 2006, 1604.15, but settled close enough to allow for one possible push higher. Watch NQ 1606.50, weekly R1. ES stalled at 76.4% 2006. ER has not yet closed the July gap (736.50). We could forge ahead, but at this point, odds favor the short side, or at the very least a conservative approach if long. My take is not as bearish medium term. I think we could pullback up to mid-September and actually maybe even enjoy a rally as the month closes. For now, patience is warranted.
This entry was posted
on Tuesday, September 05, 2006 at 3:10 PM.
