$SOX Weekly Chart

$SOX/SMH - weekly chart shows upside break above the downtrend line drawn off the July
2007 high. $SOX hit my first target of 290. Weekly CCI trend went green for the first time
since it went red in 2006. Next target range looks like 304-312 with 266 acting as weekly
support. Another obvious level of resistance is the neckline of a broken H&S pattern near
335. Price is above 13,26,and 52 wk mavs, 13 is above 26 and 52 and ticking higher. Only
52wk has not turned higher yet, but did provide support at this week's lows.

SPX Monthly Chart Update

The chart covers 1995 -2009. I drew a horizontal
white line at last month's high so we could look back
in time and see the importance of that price zone.
Let's call it 955-960.
In 1997 it was resistance for almost 6 months
before the market was able to break through.
A retest occurred in 1998 for three months.
Finding support the market was then able to
move higher. There was another test of the zone in 2001
with the market first finding support and then breaking
through to the down side finally a year later in 2002.
Next in 2003, the market bottomed,
broke through that resistance level, tested it
as support for three months, then launched the
move to the 2007 high. We can then see
the level tested and broken in the crash of late
2008. Then with our latest rally last month we tested the zone
again and were turned back. Note the bearish
Evening Star Candlestick pattern. Note also
that we still do not have a bullish crossover
in MACD. I'm not Gonzo bearish, but since
we had a bearish MACD crossover on the weekly
chart, I think it's prudent to keep long positions
small and have more cash available until the
longer term picture improves.

SPX Circus Tent Pattern

This is a 5min chart of SPX, but GOOG traced out a pattern like this on the daily
chart before it broke down in 08.

USDJPY Daily Chart

SPX Daily Chart Update 7/09/09

Note that within the channel outlined yesterday, there is a steeper down channel bounded by the yellow lines. Note the upper yellow line is following a declining 5dma which is where we failed today. We will need a catalyst(earnings perhaps) to break us out. Otherwise we will likely test 870 again. Below the blue lower channel line(870) the 100dma awaits around 850. At least it is still rising.

SPX Daily Chart 07/08/09

Head and Shoulders top not a done deal yet. Notice we are trading in a parallel channel. This could be nothing more than an A-B-C correction, or a bullish flag pattern
that traces out as A-B-C-D-E. Play it as it unfolds.
"Reaction" to earnings announcements should give
us clues as to market direction.
 

RandGold Daily Chart