50% retracments

The late day frenzy were the jittery shorts running for the exits. New bull market? I'm not falling for that one - especially after the past 12 months of one horror followed by another.

At least the weekly NYA held it's 200d sma. I wont get bullish until this longer term view gets through the midway point at 9000 where strong overhead resistance should be anticipated. For the record Dow Theory is mired in heavy bear territory and I won't get really bullish until it gives a bullish signal.

As for the Dow Composite (utilities, trans, and indus. wrapped up in one), I'm looking for strong resistance in the 4325 area.

A real plus in this rally has been the leadership by the small cap indexes. The Russell 2000 has been on a tear and out pacing the other major indexes. You want to see leadership from the small caps in any new bull market.

The XLF has rallied all the way back to its 50% retracement level. Don't get all giddy over these financial. If its the real deal there will be other opportunities to get in.







KEY 50% RETRACEMENT LEVELS TO WATCH INCLUDE:

1. DJI 11950
2. SPX 1320
3. OEX 605 - i'm still riding that oex position although i did exit 1/2 the position late last week. This one is working out well.
4. COMPQ - 2360
5. RUT - 705 (already breached)_