Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Tuesday

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

Time Frame and Trading Signals: as stated in iBox

Futures are red. FTSE sinks a lot, trading a bit above the low now. TNX gapped down and trading at LOD with an LOD signal, everything looks pretty bearish. What I'm looking for is a gap and snap scenario, I think we should at least be flat for the indexes till noon. If Iraq would agree to destroy the missles, we will have a snap back right away, as I don't see UN will pass the resoultion of US and UK. Remember, I'm Long short term because I'm actively looking for a gap and snap scenario. INDU's absolute top has been revised down to 8150, continues to be bearish on a daily basis, actively looking for shorts in every little rally.

Existing Home Sales and Consumer Confidence will come out during at 10:00am, they might be the catalyst to turn this market from red, even though the number might not have any meaning.

INDU's 5 day MACD support at -40, resistance at +80. We nailed the 7850 at -40, the fall of this morning is unexpected, but I still expect that we should do a crossover from here after the initial sell off.

INDU should have a trading range between 7750 and 7950.
NDX should have a trading range between 970 and 1005.
SPX should have a trading range between 820 and 840.
JMHO