Bullish breakout as ES closes above 50% March/July (1467.50, continous contract). This support level along with NQ 1945 is what bulls need to hold. Bonds sold off as did the Yen. Even financials joined the party, although they lagged most of the day. Keep an eye on the TRAN (transports) which faces a key test at 4960. The DOW stalled right at its 20 dma (13248). COMP could be headed for 2601 if 2540 holds. I expect bears to mount a pretty strong attack there. We are getting overbought after six up days and there are still lots of folks who want to lighten up on rallies.
The dollar continues its scary drop, giving gold a bid. Watch out for oil, which looks headed for a test of 67.50/68.
Overnight resistance for ES will be 1480 and support 1470.50, 50% July/August correction.
The dollar continues its scary drop, giving gold a bid. Watch out for oil, which looks headed for a test of 67.50/68.
Overnight resistance for ES will be 1480 and support 1470.50, 50% July/August correction.
This entry was posted
on Wednesday, August 22, 2007 at 8/22/2007 06:00:00 PM.
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