Looking at the futures

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September 25, 2005

Looking at the futures, it appears the market is setting up for a relief rally on Monday. Be careful. This is either setting up for a top or a bottom. Depending on which way Monday goes. The futures are up nice right now, but if the day ends up selling off, we may be looking at a bottom in the making. Maybe the home sales number will affect the market and turn it around, but I can’t imagine anyone thinking about anything other than Hurrican Rita effects. However, thats just the distraction the market movers want you to be preoccupied with.

If the rally scenario starts Monday it will almost definitely turn into a bounce then top and we go down the rest of September into October. Money will flow to the market, but the price is not right yet.

SMH/Semiconductors still look like they will get to about .20 higher than here. However, the longer term weekly chart has issued a sell signal.