Gold
	S&P &Futures (Click for latest)	Pre Market Futures (7:30)
		FTSE	-33
		TechMark	-4
		DAX	-42
Hang Seng +16	Nikkei -22	DOW	+22
		S&P	+0.2
		Nasdaq	+2

 

News Headlines:    US Stocks fell back despite the day's positive earnings reports and a surprising dip in jobless benefits claims last week. The turnaround was fast, with the Dow dropping 60 points in less than 30 minutes which was blamed on a computerised automated sell program kicking in and not anything more. UBS Upgrades Wolseley to Buy from Neutral Alliance & Leicester the UK's 8th largest bank says its first-half profits rose 12 percent, at the top end of forecasts, as it rode a boom in the UK housing market. Pre-tax profits for the six months to June 30 rose to 262 million pounds from 233 million last year, against analysts forecasts of 212-265 million. Basic earnings per share rose 17 percent to 39.2 pence and it set an interim dividend of 14.3 pence a share, up 10 percent on a year earlier. ICI could be a sell following very bad figures from Rhodia combined with an early sell off on the FTSE Carillion says it has been named preferred bidder for a new hospital development in south England worth more than 1 billion pounds Calendar All GMT United Kingdom (F)inals (I)nterim United States (Click Flag) Europe & World Fri 25th Alliance & Leicester (I) PBT 227m exp. Telemetrix (I) 09.30 UK Q2 Preliminary GDP 0.45 q/q 1.9% y/y exp 13.30 US June Durable Goods Orders 1.1% exp. 15.00 US June New Home Sales 1100k exp. 15.00 US June Existing Homes Sales 6.0m exp. Europe: Pirelli (Q2) Good Trading!   David@FTSEDOW.com    www.FTSEDOW.com            Pivot Calculator

UP Above 9,275
DN Below 9,075

Late-Day Decline
Dow forms v-top, sells off sharply to the Close.

From prior commentary, "...The index is making its way higher toward the upper trend line of the range at 9,240. An upside break through this level could spark the significant move that we've been looking for. However, we could see further range movement..."
The Dow traded sharply higher this morning and even got a break through the 9,240 level, which pushed the index higher by nearly 100 points in the opening hour of trading. However, a sharp reversal occurred at resistance (see 15 minute chart), which resulted in a rather violent sell-off to the Close, seen in the 15 Minute Chart.

Looking at the 60 Minute Chart, you see that the Dow ran right into a solid resistance level at 9,275 just before the big reversal occurred. This is likely the level that must be broken before another big move higher within the large channel, seen in the Daily Chart, can be seen.

The late-day sell-off puts the Dow right back near the lower boundary of the wide channel that we've been following. We will once again watch this lower boundary for a possible downside break at 9,075 - which is highly likely tomorrow. If the index can continue holding above the lower trend line, look for further sideways movement within the wide trading range, also seen in the Daily Chart.

Short Term Dow

The Dow ended the day just above the short term support level of 9,100, seen in the 5 and 15 Minute Charts. Watch this level tomorrow morning, using it as a fulcrum for direction.

Medium Term Dow

In the medium term, we entered the market Long this morning at 9,247, but closed the trade at the entry using our Breakeven Rule. No other trades were taken. We are out of the market and will widen our entry points since the market continues to exude volatility within the wide trading range. Watch 9,075 down, and 9,275 up tomorrow, with 10 point stops.

NASDAQ & S&P

The NASDAQ gappe up this morning, but filled the gap late in the session, which sent the index tumbling to the Close. Likewise can be said of the S&P. Watch the lower boundaries of their respective ranges tomorrow. *

Summary

The Dow moved higher at the Open, but was turned away by the stern 9,275 resistance level. The index sold off thereafter, ending the day near the lower boundary of the major range, which we will watch closely tomorrow. Watch 9,075 down, and 9,275 up tomorrow.

Morning all. Surprised to see DOW futures at +22 above. I was hoping that DOW would have continued to tank. Will have to wait and see.

FTSE FIB LEVEL HELD AT 4117 FOR THE 8.30 BOUNCE, WATCH 9AM FOR THE POS RESUMPTION OF THE DOWNTREND.

Continuation through 9am ftm, the Dj futs at the highs and rising!

DURABLE GOODS EXP 1.1% ACTUAL FIG 2.1 % VERY GOOD

MONDAY FTSE PP

R2 4165.6
R1 4148.4
PP 4132.3
S1 4115.1
S2 4099

Close on Fridays PP and above weekly R1, FIB range still intact from 4117 (61.8) to 4161 (78.6), Gained 1.2 in the auction!

WEEKLY FTSE PP

R2 4221
R1 4065.1
PP 4110
S1 4065.1
S2 3999

HAVE A NICE WEEKEND!