Market Caution Day
Thursday, October 5th, 2006YESTERDAY’S MARKET CALL: The DJ-30 closed up, per our technical `Flats” indicators signal after a two day down dip and made a new high close. The QQQQ hit our upside target, 50 SMA hourly to the penny, and stalled yesterday and closed below the hourly 50 SMA. The Q’s today suggest another upside close on the daily charts. Q’s first resistance is the 40.50 then the 40.60
TODAY’S MARKET CALL: Again we had a good up day with the Q’s and SP- 500 finally kicking into high gear along with the DJ-30. Transports also showed up for this move. Momentum is to the upside but we will see correction days along the way and that is my job to point out those corrections to the trend. Today we are getting signals from the `VIX’ that it is going to rally today which means the markets should see some selling as some volatility starts to show itself today. We also have some “Up volume” issues for todayindicating it too may want to correct. DJ-30 shows resistance at the 11,885 levels and supports coming in at 11,805. The DJ -30 has support on intra dips at 11,704 and resistance at 11,811 Most supports will come of the moving intra day moving 50 simple moving averages. QQQQ will see resistance at 41.50 and supports starting at 41.00 and 40.70
