AI
Wednesday, November 29, 2006 8:11:10 PM
Market Comment: Hi Wonderbuy, Certainly market is favoring EOM actions. I hope you had a great day.
QQQQ As commented yesterday, market traded higher to the resistance targets which I stated 44 and 44.22 area. As shown on the 60m chart, it bounced off from the lower TL support and was consolidating at the mid point where a TL and ma resistances are. As oil price going up (Jan07 +1.46), market swing down during the mid day, but found the intra support at 43.66 which is a continuation of consolidation from yesterday in a coil formation. As anxious buyers support the markets to float during holiday season, markets bounce at the support and traded higher into close. It is trading at Weekly upper TL Price channel which I noted during Jun-Jul 06, but now markets are certainly over extended.
In summary, Market was in a consolidation same as yesterday; however, it retraced 50% of the Monday decline.
$SPX also bounced off from the lower TL support as shown on the 60m chart. It also showing, as noted yesterday, a continuation of the recent trend even though we can see negative divergences on Daily CMF. Obviously, higher price action goes, more risk is assigned to downside. As indicated on CMF N.D., certainly less money inflow into the market.
Note) Granted that the markets are waiting for retail/small investor investors to buy the market as they follow the seasonality and as smart money slowly distributes to them. I noted this during Jun-Jul bottom that too many shorts in the market which will be squeezed, but the smart money was buying the market at that time; but, it is apparent that the smart money is distributing which can be seen on COT charts showing high volume of small investors.
DOW has bounced off from the TL support as shown on the daily chart. Even with weakening momentum and negative divergences, price action shows no sign of trendline break. No confirmation sign of a TOP formation even though we have enough of warning signals.
NASDAQ also bounced off from TL support as it bounced off from the CCI mid line (ZLR).
Certainly, "Seasonality" trumpted today as buyers stepped at the critical supports. Of course, we all know that there are trillions of small investors money to be shifted from one hand to others. Also, the "EOM window dressing" favored market as well, i.e. typically 3 - 5 days during end of month into the first of the next month.
QQQQ As commented yesterday, market traded higher to the resistance targets which I stated 44 and 44.22 area. As shown on the 60m chart, it bounced off from the lower TL support and was consolidating at the mid point where a TL and ma resistances are. As oil price going up (Jan07 +1.46), market swing down during the mid day, but found the intra support at 43.66 which is a continuation of consolidation from yesterday in a coil formation. As anxious buyers support the markets to float during holiday season, markets bounce at the support and traded higher into close. It is trading at Weekly upper TL Price channel which I noted during Jun-Jul 06, but now markets are certainly over extended.
In summary, Market was in a consolidation same as yesterday; however, it retraced 50% of the Monday decline.
$SPX also bounced off from the lower TL support as shown on the 60m chart. It also showing, as noted yesterday, a continuation of the recent trend even though we can see negative divergences on Daily CMF. Obviously, higher price action goes, more risk is assigned to downside. As indicated on CMF N.D., certainly less money inflow into the market.
Note) Granted that the markets are waiting for retail/small investor investors to buy the market as they follow the seasonality and as smart money slowly distributes to them. I noted this during Jun-Jul bottom that too many shorts in the market which will be squeezed, but the smart money was buying the market at that time; but, it is apparent that the smart money is distributing which can be seen on COT charts showing high volume of small investors.
DOW has bounced off from the TL support as shown on the daily chart. Even with weakening momentum and negative divergences, price action shows no sign of trendline break. No confirmation sign of a TOP formation even though we have enough of warning signals.
NASDAQ also bounced off from TL support as it bounced off from the CCI mid line (ZLR).
Certainly, "Seasonality" trumpted today as buyers stepped at the critical supports. Of course, we all know that there are trillions of small investors money to be shifted from one hand to others. Also, the "EOM window dressing" favored market as well, i.e. typically 3 - 5 days during end of month into the first of the next month.
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