It has been a steady down trend, but not a big problem until now. As the New Highs move down, they are approaching a place where a "squeeze" will occur. When that happens, the New Highs will need to start a new up trend or there will be trouble.

Where is the squeeze level? As the New Highs move down, maintaining the daily 100 level is a very important level to maintain for a rally. Historically, below 100 is a high risk level, and below 50 is a real negative level.

Yesterday, the New Highs closed at 141 with a down sloping resistance line. The resistance for today is 151, so it is 1 point away from a level where a serious deterioration could start occurring. By next Tuesday, the down sloping resistance will be at 93 and that is a problem level. To not deteriorate further, you now want to see the resistance broken to the upside with the New Highs increasing. As stated, the resistance level is 151 for today.

(This chart is posted every day in Section 4, Chart 4 on our paid subscriber site.)

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By Marty Chenard
http://www.stocktiming.com/

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information

Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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