What to expect into the New Year
The daily charts on the
Nasdaq 100 eminis (aka noodles) are showing the potential for a daily inverse
pup breakdown. Resistances sit at the 1691 and 1704. The daily lower
Bollinger bands are almost overlapping with the daily 50 period moving average
support at 1670. Expect the noodles to test that daily 50 period moving average
in the coming days. That will be the line in the sand going into the 2006 new
year.
From there, we will either rally and bounce with
the January effect, or breakdown for a selloff into earnings season as
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slips to 40 and the noodles lean to the 1650 x 1657 levels.
Volume is very light this week making the
intraday trading very tough to attain sustained follow-through. Tread water
until the New Year and don’t force boredom trades.
Jea Yu has been involved with the
equities markets for over 10-years. He specializes with intraday trading in the
U.S. equities and futures markets. To receive a free 7 day trial to Jea Yu’s
Underground Trading Pit,
click here or call 888.484.8220, ext. 1.