12-30-05 Market Briefing

Friday, December 30, 2005

Market Strength 20-day high: ~2530 (12/05 monday)
Market Strength 20-day low: ~2406 (12/27 monday)

Market Strength 11-day stochastic: 1, imminent one-month breakdown

Nasdaq 20-day high: ~2270 (12/6)
Nasdaq 20-day low: ~2215 (12/20)
Nasdaq 11-day stochastic: 8, falling, imminent one-month breakdown

Breakout Strength, 11-day, 80-period %D stochastic: 32, neutral

Outlook: Watch for weekly breakdown. Assume defensive posture. Volatile moves, SPX:TLT ratio showing signs of breakdown, break of Wednesday's low may confirm downtrend. Sell into stength, tighten stops. Wary of false breakouts.

Find potential long and/or short plays for the first week of January. XAU shows best relative strength.