Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Thursday

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

Time Frame and Trading Signals: as stated in iBox

Futures are green regardless of the 8:30 economic numbers. FTSE is pretty green. TNX gapped up, filled the gap, then bouncing now. The overall scene is pretty bullish. From what I see on the charts, NDX should hit the top channel today, and INDU and SPX will hit their resistance as well. In the very very near future, probably in 2 days, we should have seen the top for this rally, and head to the next phase of sell off. I will sell my longs into this rally, as the absolute max this rally is 8400 (highly unlikely). I think 8200 is more likely to be the end of this rally.

Leading Indicators will come at 10:00am, and Philadelphia Fed will come out at 12:00pm. Both numbers can only have short term effect to the market, not enough to change the sentiment.

INDU's 5 day MACD support at -60, resistance at +80. MACD is turning up, looks like it will top out at +80 when INDU hits 8150.

INDU should have a trading range between 8000 and 8150.
NDX should have a trading range between 1000 and 1030.
SPX should have a trading range between 845 and 860.
I've pushed up the support to back my bullish sentiment.
JMHO.