Pre-open 10-09-2006...

Another quick post with my Monday watch list and a quick check on the SPY chart. There were not too many good looking charts over the weekend as many were overbought. I keep thinking this market will consolidate soon, but it has not happened. In the meantime watch: HYDL, TSN, VTIV. Personally, the TSN chart looks great and a most stocks do not go down 7-8 days in a row without a small bounce.

As for the status of the markets. I have annotated the SPY daily and weekly charts once again and am amazed at how overbought the markets are. For two weeks now I've been calling for a pullback and have been dead wrong. I actually don't mind being wrong, but I am afraid the higher we go without a consolidation/pullback, the worse it will be.

Again, I like the 131 support level and would like to see a pullback there. A new support level at ~132.80 may also come into play. Even 134 looks like support based on the action last week. Both the CCI and Stochastics are rolling over and Friday's candle is not affirming, but maybe the market will continue. Check my notes:


For now,
Masterjaz out