Market Analysis for Aug 26th, 2005
Thus far during the PM session, the rally in
the e-SPU from 1204.75 to 1211.75 exhibits
counter-trend form, and as such, merely represents another
feeble oversold rally prior to another plunge to new lows--
into the 1202-1200 next target zone. HOWEVER, the ability
of the index to hold above 1208, followed by a thrust above
the intraday recovery at 1212 will be a constructive sign that a
meaningful micro low in fact did occur at 1204.75- and
that more recovery action should be expected-- to test and
hurdle the nearest resistance line at 1213.25 on the way
to probe yest.'s recovery high at 1215.25. A climb above
1215.25 will be considered a micro breakout signal that
points the index to 1220/22. For the time being, the index
must prove itself by remaining above 1208, and then by
recovering above 1213.25. MJP 08/26/05 2:50 PM ET 1208.50
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