Programs control market action into Friday

of 1227.16 with yesterday’s 1226.16 intraday low. It closed at 1227.16, which is

also just below the fourth weekly retracement-bar high of 1227.29 (see your

weekly chart). This level is also the .382 retracement to the 1201.06 08/30 low.

The next two levels of interest for daytraders below are 1222.10 and 1217.

Expiration is Friday, and this Fib time week has been a quick reversal from the

1243.13 high last Friday (09/09/05). However, the Generals will make every

attempt to mark prices up, if they can, at the end of this quarter, so any

further short-term decline is beneficial for traders and could set up some

ratio 41 and breadth -822. Another down day today will push the 4 MAs of volume

ratio and breadth to the beginning of the short-term oversold zone, and on the

daily chart, the 5 RSI is only 44, so the SPX is not in our trader friendly zone

yet. The Dow went out at 10,545, -0.5%, the
(
QQQQ |
Quote |
Chart |
News |
PowerRating) -1.1% to 39.18 and the

Nasdaq
(
COMPQ |
Quote |
Chart |
News |
PowerRating) -1.0%. In the sectors it was all about gold and energy with

our core gold stock
(
NEM |
Quote |
Chart |
News |
PowerRating) +5.3% having broken out of a Dynamite Triangle

yesterday to a 44.05 intraday high and 43.94 close. The 1,2,3 HB (Higher Bottom)

entry above 37.34 is still intact (see chart). Yesterday’s five-minute chart

entry was from a
Slim Jim above 42.80 which ran +2.9% from entry to 44.05. That

is only if you did not take the daily chart breakout of the contracted

volatility pattern. The remaining primary sectors were red, led by the RTH,

-1.1%, and
(
SMH |
Quote |
Chart |
News |
PowerRating), -0.7%. The
(
TLT |
Quote |
Chart |
News |
PowerRating) continues to be a beach ball and was

1231.84, but could not get past 1234.40 before heading south to the 1220.16