The Columbus Day holiday and the closure of the bond market brought a subdued day of trading with well below average volume. After posting a new historic high in Friday’s trading, the S&P 500 (^SPC) registered a small range inside day candlestick.



The Nasdaq 100 (^NDX) continues to be in the vanguard as it pushed further into multi-year high territory with a 0.6% gain



The exchange traded fund FXI provides a useful proxy for the Chinese equities, and the recent performance has similar characteristics to that of the Hang Seng Index that was discussed here last week. Recent intraday volatility and large opening gaps suggests that some traders are becoming nervous about the almost uninterrupted upward progress that was made throughout September. Also evident on the ETF is negative money flow divergence during the most recent surge to new highs.



TRADE OPPORTUNITIES/SETUPS FOR TUESDAY OCTOBER 9, 2007

The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions. None of these setups should be seen as specifically opportune for the current trading session.

Paychex (PAYX) has pulled back from the two notable sell-off sessions on September 27 and 28 on very light volume and could be vulnerable to renewed weakness at the $43 level which is about two percent above yesterday’s close.



Broadcom (BRCM) surged ahead yesterday in a clear breakout from the recent trading range. The February/March highs just below $50 now present themselves as a new intermediate term target.



Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market. He specializes in market neutral investing and and is currently working on a book about the benefits of trading with long/short strategies, which is scheduled for publication later this year.

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