-The INDU is trying to break resistance at 8348.  The index has shown me that it wants to go higher as evidenced by a “Tweezer like” candlestick formation on Thursday and Friday.  The DOW will have significant difficulty breaking below 7900 and staying there.  It is much more likely to go up, but must show us conviction with strong volume.  If it breaks resistance at the 8340-8350 level and closes above this mark, the index will likely continue up to test the 8900-9000 area.  I have included, for your enjoyment, some brief information on “Darvas Boxes”.  Nicholas Darvas has two very interesting books on his theory.  They are an easy read and can increase your feel for how the market moves. 

The SPX has resistance at 850-860 level.  If the index can break through and close above this area with volume, it can continue up to test 944.  It is unlikely to break support at 800. 

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-The COMPQ has immediate resistance at 1493.  If the index breaks and closes above this level with volume it could continue up to 1603-1666.  Strong support resides at 1398.

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