Market Breadth Data******************************

Friday, September 22, 2006



Yesterday's rejection at resistance, accompanied with negative divergence in market internals, was a clear sign that the uptrend is in trouble.

From a classic TA point of view, the SPX is confined by the boundaries of the rising wedge and resistance from the May 8th high.

From a Gann perspective, the index is still controlled by the Zero lines from May 2001. Resistance is at 1325, while support is at 1310 and 1303. These numbers increase by 1 point per TD.

In my preferred scenario I missed again the September 20th CIT date. I guess my subconscious is unwilling to accept that date. When taken into consideration, however, it defines the action so far pretty well, and points to Sept. 22nd as a low. Wouldn't that come as a surprise to many?

at

Terms of Use

All rights reserved by the author. The material contained herein is original content and is the sole property of the author. Any commercial use or reproduction - either in part or whole - is strictly forbidden without the author's prior consent.

Disclaimer: The information provided here is for educational purposes only and does not constitute trading advice nor an invitation to buy or sell securities. The views are the personal views of the author. Before acting on any of the ideas expressed, the reader should seek professional advice to determine the suitability in view of his or her personal circumstances.