----- Original Message -----
Sent: Sunday, July 16, 2006 9:31 PM
Subject: Trading Diary: Monday Morning Update
Monday Morning Update
By Colin Twiggs
July 17, 2006
In response to a number of requests, we will
trial a detailed weekly newsletter on Thursdays and a quick update at the start
of the week. Your feedback will be
appreciated.
These extracts from my daily trading diary are for
educational purposes and should not be interpreted as investment advice. Full
terms and conditions can be found at Terms of
Use.
USA
The
Nasdaq 100 shows little sign of completing a bear trap. Watch
for a retracement that respects the new resistance level at 1520 to confirm the
primary down-trend.
Twiggs
Money Flow (21-day) holding below the zero line, signals strong
distribution.
The
Dow Industrial Average is testing primary support at 10700. A
fall below this level would signal reversal to a primary down-trend.
Twiggs
Money Flow (21-day) holding below the zero line, signals
distribution.
The
S&P 500 displays a long tail at [5], signaling support at
1235, but
Twiggs
Money Flow (21-day) holding below the zero line, signals
distribution.
Expect a test of primary support at 1220. A close below this level would signal
reversal of the primary trend.
Gold
Spot gold is headed for a
test of the recent high at $730, but a strengthening dollar may cause a
retracement to test
initial
support at $640/$650.
Source: Netdania
Currencies EUR/USD: The euro
broke through
initial
support at 1.27 USD and is headed for a test of intermediate support at
1.25. A close below 1.25 would indicate a test of primary support at
1.185/1.165.
Source: Netdania
United Kingdom
The
FTSE 100 is following other markets into a test of primary support
levels, in this case at 5500.
Japan The
Nikkei
225 respected the 100-day
exponential
moving average from below: a strong bear signal. Expect a test of support at
14000/14200. A close below this level would confirm the primary
down-trend.
ASX Australia
The All
Ordinaries is following other markets down. Expect a test of primary support
at 4800.