Five Days and Counting...

DJIA - 35.99, -0.29% SP500 - 7.00, -0.51% NASDAQ Comp. - 16.07, -0.68% Russell 2000 - 0.76, -0.11% The broad indices finished lower on Tuesday, but stayed above the recent short-term daily support lows and the mid-section of Tuesday’s large white candle for the fifth straight day. Each day, since last Tuesday’s 391 point gain, the market has appeared ready to break short-term support, buying has kept the market from going lower. That buying has been in the support area of 12, 525 on the DJIA, 1,358 on the S&P, 2,338 on the Nasdaq and 706 on the Russell. As a result traders are faced with the continuing task on Wednesday of watching for either a break below support or a breakout above resistance. Again a reminder that the market is entering earning’s season. Keep this in mind as you open new trades or as you are monitoring existing trades. The consensus estimate is for earnings to be lower in the first quarter of 2008 as compared to the first quarter of 2007. Many seem to expect the market to move lower as a result. Dave’s Insight: “It is not the news, but the market’s reaction to the news that is important. However the market reacts, remember to trade the Chart Signals.” Today’s Action Continued Positive Movement ACI, ANR, AGU, CF, CLF, DE, FCX, JASO, MEE, MON, MOS, PCU, POT, SCHN, X Support Bounce AFL, PCLN (both in Ascending Triangle Chart Pattern)

Pullbacks AAPL finally cooled down and pulled back $3.05 today. Look for a potential support bounce trade to set up here. BIDU, EXPE, FSLR, NSM, STLD, STRA Intermediate Term Market Trend: Neutral Short Term Market Trend: Up