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WEEKLY CHARTS

DJIA: Weekly support at 10750 and 10550; resistance at 11000 and 11350.

DJTI: Weekly support at 4400 and 4050; resistance at 4800.

SP500: Weekly support at 1225 and 1205; resistance at 1300 and 1325/30.

NASDAQ: Weekly resistance at 2250 and 2350; support at 2105 and 2035.

HUI: Weekly support at 280; resistance at 345 and 415.

OIL: Weekly resistance at $75 and $83; support at $70.00 and $65.00.

The TOs ARE above the minus 5.02 level, and HEVE diverged positively, which suggests that the current phase of the decline ought to be exhausted by Tuesday or Wednesday--at the latest.

The trend is DOWN for NASDAQ.

  
The trend is DOWN for the SP.

Last week we said, "All of the indicators we follow are at the top of their range, and they have stalled. Moreover, price is close to resistance. Consequently, the odds favor a pullback early on in the week. The magnitude of the pullback will tell us whether this is the last pullback before a multi-week advance lasting for the better part of summer, or whether last week's advance was the last chance to get out!."

Currently, all of the indicators we follow have diverged positively, which normally means that last week's price weakness shouldn't last beyond Tuesday of this week, unless some exogenous event changes the dynamics of the markets. Thus, given that the indices have continued to decline into this week, we are looking for an exhaustion of the downside momentum by the end of the day on Tuesday or Wednesday, followed by an upside reversal.

Ike Iossif

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