SPY Trend Analysis - 12/22/2006

All the major US indices were negative. For the week, the Dow Jones Industrial Average gave back 102.30 points, or 0.82%. The Standard & Poor's 500 Index dropped 16.33 points, or 1.14%, while the Nasdaq Composite lost 56.02 points, or 2.28%.

Oscillators Trend Analysis Symbol Daily Weekly Daily Weekly Mtly Qtly Yrly SPY

SPY Long-term perspective:
The monthly uptrend that started on 6/14/2006 is near completion. It has a five waves impulse structure and the final fifth wave is completed or almost completed. A new downtrend toward the multiyear support line is about to start.

QQQQ - Long-Term Trend

SPY Short-term perspective:
The last fifth wave of the long-term uptrend is near completion. The wave is forming a termination pattern, weekly technical indicators are overbought, and the weekly uptrend support line is almost broken. If support holds, we may see a brief rebound, but there is not much room for the upside move. The risk/reward ratio is high.

QQQQ - Short-Term Trend

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