The S&P 500 (^SPC) closed yesterday less than four points from its recent multi-year high.  With a successful test of the 20-day EMA behind it, the next probable target is the upper volatility band just above 1400.

The Nasdaq Composite index (^IXIC) moved up 0.4% and registered a new multi year high yesterday.

The Russell 2000 (^RUT) closed within twelve points of its all time highest close of 781.83 on May 5.

TRADE OPPORTUNITIES/SETUPS FOR THURSDAY NOVEMBER 9, 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.

Global SantaFe (GSF) looks set to challenge the $58 level in the near future.

The defense sector showed weakness yesterday and Northrop Grumman (NOC) continued the path downwards that began with the weakness displayed by the long red candle from October 25. Yesterday's close positioned it exactly at the 200-day EMA.

Yesterday we cited the bearish channel for Lockheed Martin (LMT), also in the defense sector. The stock exhibited weakness on twice the average volume but the long lower tail shows that some support appeared at the 50-day EMA level.

Marvell Technology (MRVL) is in an extraordinarily constricted range and the recent money flow shows ongoing accumulation.

The chart for Macdonald's (MCD) shows an ascending wedge formation - a pattern that often precedes an upward breakout.

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.

Disclaimer
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