S&P Futures
Nikkei +254 Hang Seng +86
7:30am Futures FTSE -18 Techmark +- DAX -30 Dow +3 S&P +0.5 Nasdaq +1.5
News Headlines: GE buys UK health firm Amersham for 5.7 bln - 800p a share. U.S. stocks closed higher but off their highs but with the Dow and Nasdaq managing new multimonth highs, following reports showing improvement in the labour market and strong corporate earnings. Jarvis engineering and services firm said it had decided to exit its rail maintenance contracts, which will be brought in-house by railway operator Network Rail. They do not believe it would not produce returns for shareholders that were sufficient to balance the risks involved," the firm said in a statement.J Sainsbury said its second quarter like-for-like sales fell 0.2 percent as its rivals enjoyed a boom time in the midst of the heat wave.This was well below most analysts' expectations after Tesco's first half sales growth of 6.3% and William Morrison's first half growth of 9% percent. Boots reported slowing growth in second quarter sales at its core Boots The Chemist chain on Friday and said its gross margins for the half year were flat. Sales in the main chemist chain grew 3.6 % during the first half, with second quarter growth at 2.9 % at the bottom end of expectations.   United Kingdom Calendar (F)inals (I)nterim    United States  (GMT)   Europe & World (GMT) Fri 10th October J Sainsbury Q2 Sales Boots Trading Statement General Electric (Q3) 13.30 US Sep Producer Price Index m/m flat exp. 13.30 US Aug Trade Balance -$41.0bn exp. 07.00 EMU Sep German Wholesale Price Index m/m 0.1% exp. US: 11.00 EMU 2nd Quarter Labour Costs q/q Good Trading!      david@FTSEDOW.com     www.FTSEDOW.com Futures Pivot Calculator

FTSE PP FOR FRI

R2 4353.9
R1 4333.9
PP 4296.5
S1 4276.5
S2 4239.1

Ftse closed above Thu R1 after gaining 2.2pts in the auction, Bull flag has won the day and the right shoulder is now above the head, a fake only time will tell! Ftse Div has increased so maybe loosing heart in this rally, has not made a fresh high like the dow, real squeeze for the bears atm, Ftse and Dow still above my Long term and 60 min sig line so still in bull mode!

edit-Dow closed at high after failing to close at new highs, still no sell sig on my 60min chart after the turnaround!





Updated 10/9 for Friday's market.
Key DOW Levels for 10/10
UP Above 9,775
DN Below 9,650

Round Trip
Dow rallies at Open, but sells off to the Close.

From prior commentary, "...Looking at the 60 Minute Chart shows that the Dow continues to hold beneath the solid 9,675 resistance level, which is hindering further upside potential at this time. If the index can get the upside break through resistance at 9,675, more upside is very likely..."
The Dow got the upside break through the key 9,675 resistance level this morning, which led to a powerful move higher at the Open. The index rallied to gains of 140 points by mid-day, but the index then "rolled" over and sold off to the Close, losing nearly 100 points from the highs, as seen in the 15 Minute Chart.

The late-day sell-off pushed the Dow right back to the 9,675 resistance level, where it currently sits. We watch this level closely tomorrow and use it as a fulcrum to determine direction in the next few sessions.

The index has formed a clear trend line beneath the lows of the 15 Minute Chart and is currently sitting above this line. Look for a continued uptrend above the line until a violation of it occurs at 9,650. A downside break here will indicate severe weakness and a likely push lower.

Short Term Dow

Short term, the Dow has formed a tight consolidation at the lows of the 1 and 5 Minute Charts from 9,660 to 9,685. A downside break is implied at the Open. The 1 Minute Chart, however, is consolidating after a small rally, and so we could easily see a move higher to 9,700 before weakness sets in a pushes the Dow lower. The key for tomorrow will be to watch for weakness in this zone, as a signal to go Short there.

Medium Term Dow

In the medium term, we are still Long the Dow from 9,381 and will hold stops at 9,635 to lock in 254 points of profit on the prior move. We will Short below 9,635, with 10 point stops on any new positions. Note that we have tightened our stops up and expect for the stop to be triggered tomorrow. The odds of a retracement here are fairly high, and we want to lock in our profits so far.

NASDAQ & S&P

The NASDAQ gapped up this morning, while the S&P rallied at the Open. However, the NASDAQ ending the day filling the gap alongside the S&P pullback. Look for a continued slow uptrend until the lower trend lines are crossed. *

Summary

The Dow rallied sharply at the Open, getting an upside break through resistance at 9,675. However, the index was not able to hold on to the gains, instead opting to give back gains to the Close. Look for the index to stay relatively strong above the lower trend line. A break below 9,650 could indicate weakness.

Morning all
Well done to all the Amersham holders!

Morning all

Back for the day!