NIKKEI 225 - DECISION DAY

The NIKKEI 225 JUN’09 is pressing major directional resistance at the 9830 extreme above the 9710 Inflection Pivot posted on May 25, 2009.

If the recent run is going to fizzle and fall back into a digestive trade it will do so against the 9830 resistance. If it does reject, a turn back to the 9490 support is the immediate outlook, with the potential of sending the Index down to 9340 in the near term.

A held breach of 9830 and things start to get interesting with 10510 the initial target for the next leg higher.

Bottom line for today, the MKT is pressing the upper extreme and is either going to reject back into a neutral digestive posture or accelerate the current advance.

NASDAQ 100 - REACHING

1522 Inflection Pivot

The NASDAQ100 JUN'09 Contract is reaching and looks set for one more exhaustive push, setting up a short-term opportunity for today. If we do get another surge expectations are that the rise will exhaust either at 1499 or 1522 Inflection Pivot. Look for Reversal strategies off the 1499 resistance and be more aggressive at 1522, especially if we get a press into this area early in the session.

The outlook is for more of a big digestive trade rather than a reversal. Good opportunity to buy a put spread as an emotional trade has the potential to heat up volatility for a short-term opportunity.

A break under 1430 is needed to signal a pause in the aggressive buying, targeting 1384 on any negative turn. Be patient. If the Index is going to build a base for another advance it will do so from here. If not the contract is vulnerable to a sharp drop back down to the 1338-1336 support area. No follow through is expected at this time.

JS