Market Analysis for Aug 31st, 2005

After some wicked volatility after the Chicago Purchasing Managers report and (to a lesser extent) after the API stats were released, the Qs have managed to grind their way back to test important micro resistance at 38.74, which if hurdled should trigger additional strength into the more formidable resistance plateau at 38.90. If 38.90 is hurdled, the Qs likely will thrust towards a confrontation with the August 22-24 double-top at 39.18. At this juncture, only a plunge below 38.50 will weaken the developing recovery rally pattern.

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