You may remember that GE (GE - commentary - Cramer's Take) was a highly watched earnings announcement, and the reaction was not favorable. What could have been the beginning of a restoration in market confidence at that point turned into more fear, as the markets reacted poorly to the missed earnings. I believe GE will be similarly important this week. If the bulls will want to regain control of the intraday time frame as they build to the daily time frame, GE will either have to come in line or better than expected, or the markets will have to buy inline or negative results to show that they are willing to step up here. This is going to be a key week to the third quarter.

On the technical daily chart, we can clearly see the gap fill along with a lot of overhead resistance. I'd still like to see less buying into support and more buying at highs, looking for higher highs. This is certainly not going to happen overnight, and probably won't happen this week. This should take a few strong tests of overhead channel resistance before the break, so I expect choppy range-trading for most of this week.

I will first be watching the NDX 1800 level to act as a support guide on a closing basis. If the index can hold this level through Tuesday's close on a closing basis, then I will be looking for the index to push back to the NDX 1875 level by the close of Thursday's trading session. GE comes out on Friday; I'm hopeful that some repair work can happen ahead of that report so if the market does react negatively to the report, there is enough room for the index to drop. I mainly want to see the 1800 not violated this week.

If the index should close under 1800, we have a little support right at 1785 that will need to hold, or else the third quarter is going to have a very difficult start for the bullish camp, of which I am trying to be part for the next few months. My goals for the third quarter are NDX 2040 as well as 2140 if economic data really begin to turn around in the global markets. I will be happy with 2040 by mid-August at this point.