Monday, September 18, 2006
Daily Market Commentary
Updated Friday, 9/15 for Monday's market
Pop and Drop
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Updated Friday, 9/15 for Monday's market
| Key DOW Levels for 9/18 | |
| UP | Above 11,650 |
| DN | Below 11,500 |
Pop and Drop
- Dow rallies out of clear triangle, but pulls back from key 11,600 zone. The index fell about 36 points shy of our 11,650 target and eventually reversed from the day's highs to end the day with a 33 point gain.
- The NASDAQ and S&P each traded off the day's highs and look to be in the midst of forming bearish head-and-shoulders patterns. Look for a continued build-out of their respective patterns, a breakout could make for big movement ahead.
Summary
The Dow closed the day with a modest gain after pulling back from the day's opening blast higher. The index has been rejected by the 11,600 level and could look to regroup before another breakout attempt is seen. Watch for a light retracement early next week, unless 11,500 is broken. A violation of this level could make for much bigger selling.
- The NASDAQ and S&P each traded off the day's highs and look to be in the midst of forming bearish head-and-shoulders patterns. Look for a continued build-out of their respective patterns, a breakout could make for big movement ahead.
Summary
The Dow closed the day with a modest gain after pulling back from the day's opening blast higher. The index has been rejected by the 11,600 level and could look to regroup before another breakout attempt is seen. Watch for a light retracement early next week, unless 11,500 is broken. A violation of this level could make for much bigger selling.
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