Market Comments

Markets closed above pivotal supports: DOW 8000, SPX 817, Nasdaq 1455, and Qs 28

$COMPX 1477.29 11.80 0.81%
$INDU 8077.56 -45.24 -0.56%
$INX 831.95 4.45 0.54%

Markets remained in a trading range during the Obama Inauguration week. We have Geithner confirmation hearing on Mon, the Fed Tues and the announcement on Wed, 1/4 of SPX earning reports, and heavy eco news for the week as shown on the Economic calendar.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35055705

Obama Admin is working hard to revive our economy while market sentiment is quite pessimistic. My reading of major market price actions are mixed; however, as noted before, we have a good chance that markets will trade up based on economic bounce with the economic stimulus program.

Daily price actions show a potential C&H formation if the pivotal supports are held, and could develop into Inv H&S formation market bounce with the 1/20 CIT speculation. While we could see market bounce to upside to develop Inv H&S formation, breaking below the noted pivotal supports negates my anticipation of the market bounce, rather to retest the recent lows.

Worse cases are regressively breaking the pivotal supports, retesting the 11/21 low, and trading to lower/low supports – e.g. SPX 741, SPX 700 +/-. The SPX long term chart is in the iBox and have shown long term analysis in the previous posts.

Good luck,

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