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WEEKLY CHARTS

DJIA: It's on its way to 11000.

DJTI: It's on its way to 4250.

SP500: It's on its way to 1285.

NASDAQ: It's on its way to 2280-2300.

HUI: If it can hold above 250, it will rally further; otherwise the next 2-3 weeks may be disappointing.

OIL: Resistance at $60.00, $62.50, $67.50, and at $72; support at $56.50.

The T.Os have diverged negatively suggesting that yesterday's pullback was highly likely.

The trend is UP for NASDAQ.

The trend is UP for NASDAQ.

SUMMARY

We do not believe people ought to make much out of yesterday's decline. Notice that the Oscillators are not too far from the zero line, and price is not too far from channel support. We expect to hold, and if they do, the SP will make a run towards the 1285-1290 zone, and that will be the area to look for a sharp move. "Seasonality"  still favors equities, and there are many in the industry who stand ready to defend their year-end bonuses by throwing their clients' money in support of the market. Unless there is an exogenous event that forces money managers to change their posture for right, there is one reason behind the market's behavior, and it is directly linked to the interests of the "financial industry" and can be summed up like this: "We have got to support prices so we can get our bonuses at the end of the year; we have got to pay for that new HUMMER, and the vacation in London to please the wife; we'll worry about aligning our positions with reality later!" All the rest is just  conversation and academic garbage.

Ike Iossif

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