Ander's Market Theories

[AnderL]

This may become a broad based rally into FOMC. Resistance was at 1550, on the NDX 10350 on the INDU, 2070 on the COMPQ and 1190 on the SPX.

The bottomw was put in by the NDX and COMPQ last week ahead of the INDU which rallied ahead of all the other markets. It was the techs that keep everything back this week at that 1550 resistance. Yesterday going into today they held stronger support than the other markets and more than made up for it by breaking resistance first and pulling the other markets into the green. Technology stocks tend to always signal a bottom reversal as energy and metal stocks tend to signal top reversals.

SPX seems to be lagging all the markets holding them back right now and that is what makes me resistant to consider this a full fledged reversal and rally into the holidays. So I'm still cautiously holding the UOPIX and watching how the markets handle the SPX underperformance. To bring more jubilation into these markets I would expect that the SPX would have to break that 1190 prior to the close to help keep the large gains from today.