Zeev's Turnips Patch-No Politics (ZEEV)

[ajtj99]

Zeev, it's not my major support <G> We've got several things in play in that area.

1319 is the mid-November pivot low.
1315 is the 50% re-trace of the move up out of October 10.
1319 is the location of the lower Bollinger Band on the daily:

http://stockcharts.com/def/servlet/SC.web?c=$COMPQ,uu[h,a]dhclyiay[d20010114,20010330][pb20!b50!b200...

In addition, there is a falling support line at around COMP 1315 off the last two pivot lows, and 1300 COMP is the target for 3-black crows on the daily (imperfect as they are). SPX 962 and Dow 8150 are the approximate 50% re-trace off the Oct. 10 lows.

1330 was also the approximate location of the falling support/resistance line off the Jan & March 2002 highs. It's dropping each day, but not that much.

My study on closes below the 50SMA shows that once we close below the 50SMA, we tend to stay below it until we get a major re-trace, and then we go over it only on a ramp before a drop to a new low.

The 50SMA is currently at COMP 1381. That's a very tough nut right now.

On the side of optimists is QQQ Max Pain for Jan. at 25-26, and SPX Max Pain at around 900 (but 875 also may work).

If we get to COMP 1314, it would be an equivalent hit on SPX 962. That might be a decent place for a target low on this drop.

If we go much lower, it will take more time, IMO, since we normally don't pierce the lower BB by such a large amount unless there's a gap down.