A spinning top candlestick was registered on the S&P 500 (^SPC) chart yesterday with an intraday range of less than seven points. With only two trading sessions remaining before third quarter accounts are closed out there may be some shifting of assets into institutional favorites. Intel (INTC) benefited yesterday from positive business developments and also broke above $20 for the first time in several months.

The Nasdaq 100 index (^NDX) recorded a Doji candlestick with long shadows in another session where the recent momentum for Nasdaq stocks appears to have temporarily dissipated. As we move into the fourth quarter and possible earnings pre-announcements it will be illuminating to see whether the Nasdaq indices regain the greater momentum that would be required to confront their 2006 highs again.

BBH, one of the exchange traded funds that tracks the biotech sector, enjoyed a strong rally that broke it above the trading range that extends back to early April. Positive broker comments on Genentech (DNA) helped to drive the sector but the sector still has some way to go to reach back to highs above 200 in November 2005.

TRADE OPPORTUNITIES/SETUPS FOR THURSDAY SEPTEMBER 28, 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.

Our suggestion that Ford (F) might see renewed selling at the $8.40 level was validated in yesterday's trading where a short trade initiated on the opening price would have yielded almost a five percent return for the day.

The volume chart for Texas Instruments (TXN) shows advancing volume with associated accumulation as the stock looks like it wants to break above the recent trading range.

Sara Lee (SLE) should encounter resistance in the region of $16.20

Novatel Wireless (NVTL) recorded a hammer formation on heavy volume just below the $12 level and could be preparing to break above the previous highs from July.

Sun Microsystems (SUNW) has recently breached an upward trend line that extends through the lows since mid July and the money flow and momentum are suggesting that a correction may be emerging.

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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