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DAILY CHARTS - TUESDAY

DJIA: (Last week) The  lack of follow-thru to Friday's robust rally both on Monday and today, Tuesday, ought to be worrisome for the bulls because it suggests that a double top may be in the making.

2-22-05: The "double top" scenario became more of a reality with today's decline, however, notice that the up-trend is still intact. The bears need a close below 10500, and preferably below 10350 before they can celebrate.

DJTI: (Last week) It continues to consolidate below resistance. The bears have something to "hang their hat on" as long as this index doesn't close above resistance, and in fact this index may be giving the bulls an advanced warning if they care to see it.

2-22-05: It closed right at support. The bears need a close below 3400 before they can celebrate.

SP500: (Last week) The lack of follow-thru to Friday's robust rally, both on Monday and today, Tuesday, ought to be worrisome for the bulls because it suggests that a double top may be in the making.

2-22-05: It closed right at support. The bears need a close below 1160 before they can celebrate.

NASDAQ: (Last week) It has spent almost two months below resistance. This index needs to get above 2115, and stay above it, if the bull run is going to continue higher.

2-22-05: A close below 2000 would mean "adios" to the bull run, at lest for now.

HUI: (Last week) It met its upside target of 210, so a pullback can be expected.

2-22-05: It pulled back to 204 and rallied up to the next upside target at 220. We can expect another pullback to 213-210.

US dollar: (Last week) It pulled back from resistance, and it is now testing channel support.

2-22-05: Channel support did not hold -surprise, surprise- but the dollar bulls may be able to save face if the 82 support level holds.

Utilities: (Last week) It broke above resistance suggesting an upside target of 360.

2-22-05: It made contact with the upside target and it was turned down violently. Look for support at 335.

Spot Oil: (Last week) Resistance at $50.00, support at $45.00. If it closes above $50.00, the next upside target is $52.50. If it closes below $45.00, the next downside target is $42.50.

2-22-05: A close above $52.50 would indicate a further rally to $55.

Summary

(Last week): Both yesterday and today we got no follow-thru to Friday's robust rally, which is not a good thing! However, sometimes the markets do "pause" for a day or two before they power up higher, so maybe the bulls will show what they've got over the next three days. However, make no mistake; unless the indices overcome resistance and begin to accelerate to the upside, the rally will come to an end by week's end, if not sooner.

(Current 2-22-05): Higher oil prices, a lower dollar, and lingering fears over inflation all conspired together to drive  equity prices lower. In my view, the decline has more to go, but the bears can't celebrate unless we see a close below 1160 in the SP and 10350 in the Dow.

Ike Iossif

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