Technicals Dominate

Today’s
piece will be brief,
not only due to
scheduling, but also due to the fact that the market continues to trade in a
similar, albeit very lucrative, fashion. Intraday setups continue to be
excellent and the current support and resistance levels in the S&Ps are holding
well. However, the Nasdaq, which has been the noticeable laggard in recent
sessions, broke through very critical support at 1365. The next downside target
is 1272.

For intraday setups, the hit list
remains the same, IBM
(
IBM |
Quote |
Chart |
News |
PowerRating)
,
Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating)
,
Texas Instruments

(
TXN |
Quote |
Chart |
News |
PowerRating)
and Micron
Technology

(
MU |
Quote |
Chart |
News |
PowerRating)

For those of you in
TradersWire
yesterday afternoon, I trust you capitalized on the setup I pointed out on
Citigroup
(
C |
Quote |
Chart |
News |
PowerRating)
off the hourly chart. If you
closed the position out before the end of the session, you netted anywhere from
.40-.60 cents, while never suffering a draw-down. I will do my best to point out
more of these setups each day.

Today’s session will again be
dominated by how the indices handle their respective technical levels. Knowing
these levels will give you a very nice edge.

Key
Technical Numbers:
(futures)

S&Ps    Nasdaq
1120-22   1412
1108-09      1387
1106.5  1373-76
1094     1365 (key resistance)
1090 (confluence)     1346 (current low)
1085 (key resistance)   1334
1075.5 (recent low) 1326
1061.17 (critical support)  1296
1047  1272
1037     1264

As always, feel free to send me
your comments and questions. Due to travel plans, I may not be able to provide a
column for Monday, however, I will provide the KTNs
Have a great weekend, see you in

TraderWire.

Dave

P.S.
A few days ago I received a voice mail
from Steve Bell.  Mr. Bell, can you please email me at
davef@tradingmarkets.com and
provide me with your contact information.  I apologize, but your original voice
mail was erased.