Henry Ford's MarketWatch LIVE!

3:52 PM
BULL FLAGS STILL WORKING
As we near the close of the day we are at the top of the flag range on indices and at hour's close the 12hour RSI should drop. Cyclically looks like we are setting up for a mid to late day rally beginning tomorrow or Wednesday morning.This next channel test would put price at either the 32% or 50% Fibonacci Level depending on the index which would be an ideal area to rebound for a renewed rally. If this scenario plays out, then next resistance on break from Bull Flag would be the length of the flagpole to the lowest point of the formed flag and project between 9600-9700 DOW and 1030+ on the SPU
:: Henry Ford ::

3:08 PM
HERE IS THE BULL FLAG SETUP
12Hour RSI still high, but will drop rapidly once Friday's gap drops off the averages.

:: Henry Ford ::

11:28 AM
DOW FIBONACCI

:: Henry Ford ::

11:12 AM
MARKET HAS WEAKENED
But after recent gains since Thursday, this was what we expected.
Semis were up 15% Friday, Biotechs 13%, Software 10%, so this has to be digested before moving higher.
Thursday and Friday formed a tall 'FlagPole" pattern which we now would like to see consolidate into a "bullish Flag" pattern over the next day and a half. These are very strong Bullish patterns, and the most likely scenario for the next week.Once this is confirmed we will post a chart with projected target. First support for this pullback is 970-972 on the SP500 Futures contract....9200 area for the DOW...1020 area NDX. We do have those gaps below that we always have to keep an eye on as price magnets, and of course, while it would be painful in the short term, it would be much better to get them out of the way for the longer term. Hourly gaps on NDX 996, DOW 9054...SPU2 955.
Our 12 hour RSI indicator got into very overbought territory on Friday and the only way to bring it back down is either through a retracement or enough time elapsed to let the averages settle out.
:: Henry Ford ::

9:56 AM
EARLY VOLATILITY
A bit of a yo-yo early session, but milder than expected reaction to the WSJ article suggesting that MRK claimed billed revenues over the last few years in excess of $12 Bil that it did not collect.
Biotechs/Airlines/Gold/Defense and Networking leading this morning so far. Drugs/Software/Utilities/Energy and Wireless trailing.
:: Henry Ford ::

9:52 AM
NEW TOP 50 INDUSTRY LIST
SELECT FROM LEFT HAND COLUMN
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9:46 AM

:: Henry Ford ::

9:30 AM
GAP DOWN THIS MORNING
It will take 20 minutes or so to settle out ultimate direction.
:: Henry Ford ::

5:37 AM

ECONOMIC CALENDAR THIS WEEK

Light economic calendar this week although there are a couple of significant reports later in the week. Producer Price Index (PPI) is scheduled for release on Thursday, which is followed by the Friday release of Retail Sales data, and the preliminary read on Michigan Sentiment. The last couple of weeks was a time of concern for investors waiting for earnings warnings that for the most part did not materialize. Starting the 15th we will have earnings releases which are predicted to be positive in terms of quarter over quarter growth.
:: Henry Ford ::

5:09 AM

LOOKS LIKE WE WILL GET OUR RETRACEMENT TODAY:
In my commentary over the weekend I said that even though we just had a 300 point rally Friday, we felt today or Tuesday we expected to get a retracement of this latest rally, and this may be your last best opportunity to get on board. This market is not going to go straight up...it didn't go down that way, but it IS GOING TO LEAVE MOST INVESTORS BEHIND. We left a sizeable gap on the NASDAQs and the SP500 futures contract which may or may not get filled. (we would like to see them filled before we really launch this market)., but in any event we can expect at least a 32% to 50% retracement of Fridays high before we can move much higher. For all the reasons given in last nights commentary, I believe this will set the stage for substantial gains as the summer wears on.
:: Henry Ford ::

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