Daily market commentary for Monday, Sept 25, 2006

***Written By: Teresa Appleton Stock Forum ID: Teresa*** ”

Friday closed the week in the red, which also left the week red on the broader indexes. Fridayâ€™s volume was lower than Thursdayâ€™s and this weeks volume was lighter than last weeks, so it was not a distribution week. This should still be looked at as corrective action, a pullback. Little bit of a disappointment is being heard through the markets with the Dow and S&P 500 so near record highs, but the market couldnâ€™t muster it up to find a break out. Due in part to a nervous market regarding the FOMC this week and now nervousness for a slow down in the economy.

Crude closed down $1.04 at $60.55. Spending much of the week just over $60.00 lessened the energy pressures on consumers. But we still see fears of an economic slow down so crude will be watched closely for any increases. Gold closed up for the third consecutive session at $595.40 +$7.10.

The week ahead we can look for some nice volatility as the month closes and a lot of data will be released. Earnings are still light, but we are seeing mid quarter updates come out and some of those are showing some slowing and narrowing of the ranges. Another drop into the 20emaâ€™s should be watched for and into 38.2%, all on the charts below. Monday we will look for a bounce then continued weakness as the market opens.

ES (e-mini S&P 500 futures) put in a red week and we will look for further downside. The weekly pivot of 1323.75 held as nice support this past week. A break of that level will be watched closely. The upcoming week the pivot is 1329 with a daily pivot on Monday of 1325. Both levels are likely to be key throughout the day and should be watched. Support: 1321.25, 1316.75 and 1313.50. Resistance: 1327.75, 1330.50, 1335.75.

Some earnings for next week of interest: Monday pre market WAG and after the bell ANGO, JLG. Tuesday pre market LEN and after the bell JBL, RHAT. Wednesday pre market MKC and nothing after the bell. Thursday pre market AM, FDO and after the bell CAN, ESIO, RIMM, TXI. Friday pre market MAG.
Economic data: Week of September 25^th â€“ September29^thMonday 10:00 Existing Home Sales, Tuesday 10:00 Consumer Confidence, Wednesday 08:30 Durable Orders, 10:00 New Home Sales, 10:30 Crude Inventories, Thursday 08:30 Chain Deflator-Final, 08:30 GDP-Final, 08:30 Initial Claims, 10:00 Help-Wanted Index, Friday 08:30 Personal Income, 08:30 Personal Spending, 09:50 Mich Sentiment Rev, 10:00 Chicago PMI
Lets look at some charts:
NDX (Nasdaq 100) closed â€“12.50 at 1622.37. Support: 1617.64, 1606.29, 1578.76. Resistance: 1628.03 200dma, 1651.00, 1680.52, 1701.98 and 1721.13.