08 March 2007


We've got a chart of the cash NDX above. As you see the 20 day MA (purple) is about to cross the 50 day MA (orange?) which is considered a bearish signal, yet often it leads to a short term rally sometime marking the end of a move...so you have to very careful here as shorts could get blown out here especially short term...The 200 MA (blue) is is still angling up @ 1675 and one would have to assume that we have a dinner date with her sometime in the near future...figuring out when that happens is the tough part. We may have some upside work do here so fading a move above 1755 may not be the way to go...buying the dip if we roar out of the gate seems the safer play because you can define your risk a bit better using yesterday afternoon's pivots in the 1748-1750 area as an entry...we'll have to see how the flow goes. The 20-50 MA cross is taking place at about the 1785 level so may have to kiss her there before she'll have dinner with us at the 200 MA. Just some thoughts...jfg

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