One of the first things that you learn as a technical analyst is that fundamental events trump technicals.  That was extremely apparent this week as the market thrust up and down with triple digit moves every day on news.  We have essentially ended where we began.  Where to now?  Under normal circumstances I would be bullish without reservation.  However, these are not normal times.  I am bullish but I am watching the cross traffic closely as I pass through each intersection on the road up.  11560 has posed strong resistance recently.  If that is breach, my next target will be the doulble top area at 11790-11870.  Support resides at 11340, 11150 and 10173.  I will be adding hedged long positons to my portfolio Monday. 

See INDU comments.  1265 is my first upside target.  If the indx breaches that level, the next stop is the double top at 1303-1313.  Support is moderate at 1234 and then1200 which represents the July low.  The bottom of the range would be a retest of the low from 9/18 at 1133.  I am bullish but nimble and hedged.

The Nasdaq formed a bit of a different candle than the other two indexes on Friday.  It gapped up to the 50 day sma and retraced well off its high to close lower.  I’m not as bullish on the Nasdaq.  I feel that it will be sideways to up.  The first area of resistance is 2330 and then 2413.  We have strong support at 2230, 2170 and then the low of 9/18 at 2070.

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