We should expect to see a continuation of the short-term trading range until the mid-term elections pass. I am still watching the 1700 level of the NDX closely and I think if that falters and holds then the market could be in for some short to intermediate term trouble. Howver, if the market contiues to consolidate around this level and reacts to attempts to breach the 1700 mark like it did today then I think we might see new highs by year end. I think the mid-term elections could be a pivotal area for the market going forward.
RSI (5) Wilder for November 2, 2006
- SPY - 31.5 (neutral)
- DIA - 29.8 (oversold)
- IWM - 26.2 (oversold)
- QQQQ - 41.8 (neutral)
Andrew Crowder, Chief Investment Strategist, www.crowderinvestments.com