Market Analysis for Jul 7th, 2005
What a day, so far. The e-SPU plunged in pre-open trading
from 1206 to 1170.75, and then recovered all the way back
to 1199.25-- as if nothing happened at all. My intraday work
argues that the 28.50 point rally ended at 1199.25, and that
at the very least, the index should retrace some of today's
gains-- into the 1190 area-- in the upcoming hours. If there
is no real pullback, or just a high-level congestion period in
the 1200-1194 area for instance, the we will have to regard
this AM's low as THE low of the June-July corrective period
from 1225.25 (6/3) to 1170.75. If that proves to be the case,
then a new upleg is in progress, and we will have to get long
to participate in the run at the March highs of 1239.25. For
right now though, we are short looking for a pullback into the
1190 support area prior to the possible emergence of another
potent rally leg. MJP 07/07/05 2:25 PM ET 1196.50
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