Market Analysis for Oct 13th, 2004

Just a quick update of our BIG picture view of the December S&P E-mini, which you will notice has an OUTSIDE DOWN DAY in the works, and which also smashed below its Aug-Oct trendline AND its rising 200 DMA -- ALL in the past few hours! Yes, today's action inflicted some REAL damage to the intermediate uptrend in the E-SPZ ... .Next immediate target is a test of the flat 50 DMA, now at 1108, and which if violated will point to a full-fledged retest of the 1101.25 pivot low from Sept. 28th. Only a sudden rally that claws its way back above 1117 on a CLOSING BASIS will repair some of the damage inflicted so far today.

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