Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Friday

Overall Market:
Long Term: Short
Medium Term: Short
Short Term: Short

Time Frame and Trading Signals: as stated in iBox

Futures are slightly green, but TNX keeps going lower after open, hence we should fade this gapup. 8950 has been tested three times, usually it means we are going down. Unless they can somehow work against TNX in the morning to form the right shoulder on the hourly basis. The Short Term top has been has been revised down to 8150 or the high of Wednesday.

Mich Sentiment-Rev will come in at 9:45am, while Chicago PMI will come in at 10:00am. Expect a very short term influence to the market.

INDU's 5 day MACD support at -60, resistance at +30. The MACD divergence was broken when we broke the 320SMA yesterday. If the gap fading works, one might want to cover the shorts at -60.

INDU should have a trading range between 7800 and 8150.
NDX should have a trading range between 960 and 1010.
SPX should have a trading range between 830 and 860.
I have a rather big range today, as if we aren't making the right shoulder on the hourly chart, we should sink like a rock.
JMHO.

As I finished typing this message, the futures are now red... so maybe we can't even fade the gap, but only heading to the titanic.

signed,
Bernard