The DJIA's ability to finally register a new all time high after almost seven years has provided an opportunity for the mainstream media to draw attention to the resilience of equity markets. It will take more sustained gains for occasional and reluctant "investors" to become convinced that they should be venturing into stocks and mutual funds again but as the competition from the housing market has faded there could be substantial buying power on the sidelines. Meanwhile in yesterday's trading there was an absence of any euphoria and celebration from the other indices as the S&P recorded a minor gain that failed to reverse Monday's pullback.

The Russell 2000 (^RUT) has shown none of the recent enthusiasm that has enabled the DJIA to post a new all-time high and is still confined within a narrow range/channel that extends back to the May correction. As noted before there is a very marked reticence to take on the key 740 barrier.

The gold and silver sector index (^XAU) gapped down and finished the day with a 6.6% loss. Yesterdayââ,¬â"¢s close was just above the 2006 low that was seen in June and less than ten points from the breakout level of last November.

TRADE OPPORTUNITIES/SETUPS FOR WEDNESDAY OCTOBER 4, 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.

Boeing (BA) rolled for a second day on above average volume in the wake of the announcements that the Airbus A380 will be severely delayed. Yesterday's 2.3% gain accounted for more than ten points of the DJIA gain and it would appear that there could be further gains ahead.

Ford could be close to completing another bearish ascending channel formation in the context of its recent negative performance.

Amerisource Bergen (ABC) registered a Doji candlestick on Friday exactly at the 20-day EMA and within the context of an ascending channel/bear flag formation.

Foundry Networks (FDRY) looks set to continue to explore higher prices in coming sessions.

JB Hunt Transport (JBHT) looks ready to take on the chart hurdle in the vicinity of $22 and there has been noticeable accumulation in the last several sessions.

Marriott International (MAR) dropped below the 20-day EMA on heavy volume

As noted in one of last week's commentaries, Sara Lee (SLE) appears to have encountered resistance in the region of $16.20

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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