The DOW had a weak attempt to break to the downside on the Head and Shoulders and I was not convinced the move was for real as I mentioned in last week’s blog.  As a result, we had five straight bullish days to finish the week 597 points higher.  We are approaching the swing high from 6/11 of 8878 and a lot of congestion from October 2008 through January 2009.  The next target if we penetrate though the 6/11 level will be 9088.  Support is located at 8592, 8221 and the swing low at 8087 from 7/8.  We finished the week with a spinning top which could be an indication that the recent move will begin to stall at this level.  We will need confirmation on that.

As indicated last week, I suggested that the upside target for the SPX would be 932 and we finished the week at 940.  We finished the week with a Long Legged Doji candle right at the congestion area from June and the swing high from 1/6.  The next upside target is 944, 956 and 1007 from 11/4/2008.  Support resides at 910, 889, 879 and 869.  We will probably move into a Bull Flag and trade sideways this coming week as the index sifts through earnings season to decide if it wants to continue up or not.

The COMPQ moved up to the swing high from 6/11 at 1880 and formed a spinning top.  This may be indicative of slowing, but must be confirmed.  If the index sustains its momentum, the next target will be 1896 and then 1905.  We have support at 1880 and 1862 in addition to Wednesday’s low of 1824. If that fails, then 1793, 1778 and 1727 are targeted.  My sense is that we will rest a bit at this level and move into a Bull Flag before moving up.

 Week over week we were up big with the DOW posting a 597 point gain, the SPX up 61 and the COMPQ better by 131.

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