The S&P 500 cash index (^SPC) continued its gradual ascent yesterday towards the 1325 level which coincides with the multi-year high that was achieved on May 5th. On the SPY chart below the actual highest recent close was achieved on May 9th at 132.04. Volume almost reached the fifteen day moving average in yesterday's trading but it will be useful to see how price behaves as the volume picks up in coming sessions

The Nasdaq Composite (^IXIC) maintained its posture of outperformance of the other indices yesterday with a 0.6% gain and a close above 2200, which marked the first time this index has closed above this level since June 2. Some possible chart resistance is indicated around 1220, coinciding with this early June period.

The gold and silver index (^XAU) had a strong session yesterday gaining 1.4% and appears to be in synch with the broader market in seeking to revisit the highs that were recorded in early May.

TRADE OPPORTUNITIES/SETUPS FOR WEDNESDAY SEPTEMBER 6, 2006

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.

We mentioned Citrix Systems (CTXS) on August 31 in the context of the bull flag formation with supporting money flow characteristics, since then the stock has moved sideways but may now be preparing to move upwards as yesterday's range expansion was also accompanied by above average volume.

Intuit (INTU) appears to be facing some resistance at $32 and may try to challenge that level today. Another long upper tail would underline the weakening momentum and money flow features on the chart.

Wells Fargo (WFC) has one of the more problematic charts in the banking sector. Yesterday's spinning top candlestick straddled the interval between the 20 and 50 day EMA's and it would be worth monitoring today's price action for possible breakout behavior.

Marathon Oil (MRO) has continued to show choppy price action since we discussed it here on September 1st. Distribution is clearly evident and the stock may need to head lower before buying support emerges.

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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