The DOW is at an inflection point with some fairly strong resistance.  The index is likely to move back down into the trading range this week.  We moved up as I suggested would happen as indicated in my post from last week.  My target was 9630 and we had a closing high of 9627 on Thursday 9/10.  I felt we had a chance to break above 9630 but it was not to be.  It was a shortened trading week after the Labor Day holiday and I expected more volume than what we got.  There doesn’t seem to be more conviction to drive the market higher at the moment.  I expect that we may be range bound for the short term.  The range is 9253 to 9650.  Should the index break below 9253 I will begin to lighten up on my long positions and then look to 9117 as a key area of support.

 The SPX finished the week at 1042 and my post from 9/5 projected a finish at 1039.  The index printed a Spinning Top and a Bearish Harami to close the week.  I feel that we will trade back down into the recent trading range in the near term.  We need more market participation in order to drive the index above recent highs.  Look for 1044-48 on the upside as immediate resistance and 1016 and 992 as support on the downside.

As has consistently been the case since the March lows, the COMPQ has outperformed the DOW and the SPX and been the leader.  This week has not been an exception.  I called for a bullish move this past week and felt that the index would challenge the recent high at 2059.  The COMPQ exceeded that level to finish the week at 2081.  Friday formed a Spinning Top/Bearish Harami and as a consequence we could see some bearish activity in the beginning of the coming week.  I am not sure that it will be anything more than a brief respite.  We will just see how it plays out.  Look for the upside resistance to be 2089 and then 2211.   The downside support resides at 2059, 1993 and 1958. 

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