11310 AND 11150 OFFERS STRONG SUPPORT AND 11550 HAS FORMATIVE RESISTANCE.  WE COUPLE THAT WITH THE FACT THAT IT APPEARS THAT WE ARE FORMING A SYMMETRICAL TRIANGE CHART PATTERN WITH AN INCREASINGLY NARROW TRADING RANGE AND MUCH INDECISION.  WHENEVER THE MARKET MOVES INTO A COMPRESSED TRADING RANGE, ONE NEEDS TO LOOK FOR BREAKOUTS/BREAKDOWNS.  WE WILL WATCH THE AFOREMENTIONED LEVELS OF 11310 FOR SUPPORT AND 11550 FOR RESISTANCE AND SEE HOW THE MARKET REACTS AT THOSE LEVELS.

SEE INDU COMMENTS.  WATCH THE 1234 LEVEL ON SUPPORT AND THE 1266 LEVEL ON RESISTANCE.  A BREAK BELOW 1234 IS A RED LIGHT WITH THE JULY LOW OF 1200 AS THE NEXT TARGET.  BELOW1200,1173.

1725-35 PROVIDES SIGNIFICANT SUPPORT. IF YOU OBSERVE THE MARKET SYMMETRY OF THE CHART, YOU WILL NOTICE THAT WE HAVE SWING LOWS IN JAN,FEB AND MAR. OF ‘08 AS WELL AS FEB. AND MAR. OF ‘07.  WE ALSO HAVE VERY STRONG CONSOLIDATION FROM NOV. ‘05-MAY’06.  THAT ALL TRANSLATES TO VERY STRONG SUPPORT.  IF THAT LEVEL IS BROKEN, IT WILL BE A SIGNIFICANT EVENT AND COULD FALL TO 1515 FROM OCT. ‘05.  THE UPSIDE HAS STRONG RESISTANCE AT 1780, 1825, 1925 AND 1975.  EACH OF THOSE LEVELS IS STOUT.  MY OPINION IS THAT WE ARE CONSOLIDATING BETWEEN 1725 AND 1780.  WE WILL WATCH THESE CRITICAL AREAS ON THE CHART AND REACT APPROPRIATELY.

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