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First Targets .. DOW, $SPX, $OEX and NASDAQ

Author: Harry V (info)
Website: http://myoptiontrades.com
Posted: April 25th, 2008 at 6:44 pm EST
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February 26th, 2008, we posted our targets and same are reposted hereunder for easy reference.

“” $SPX .. First target is 1420 and further out 1460, 1510. If the last target is achieved and decisively broken we have to revisit our BEAR Strategy. For DOW, 12895 is our first target, followed by 13230 and 13650. NSDQ, 2540 followed by 2630 and 2725 and $OEX our targets are 665, 685 and 705. “”

DOW achieved and closed today at 12891 while other Indicies are trying catch up. $SPX closed at 1397.84, $OEX at 644.85 and NSDQ closed at 2422.

What does that mean for us all and how do we trade hereon … that is the million dollar question ??? Let us first accept that we are at very critical juncture and at serious Resistance areas in all Indicies.

Inspite of recent and apparent formidable strength all across in all Indicies, it is interesting to note that very few ( 91 to be exact ) new highs were made Thursday on NYSE, NSDQ and AMEX combined. Even on strong days like Wednesday and Thursday, there appeared to be rotation in recent gainers and some commodity stocks were hit hard. As such, overall strength appears great while underneath the surface is a very different story.

Time to tread carefully, more so in view of FED FOMC meeting next week. Remember that we are in a BEAR MARKET rally and most upside action is likely short covering. This is the time to stay wide alert ( and awake ), watch your loss limits and do not get over stretched or focused on any one direction. Be flexible and DUE DELIGENCE is the key. Volatilty index has remained well under the recent moving averages but could spike higher after the FED meeting.

Happy trading.

Harry V 

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