Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Friday

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

Time Frame and Trading Signals: as stated in iBox

Futures are green. FTSE is trading at HOD. TNX gapped up and trading at LOD, more like a consolidation though. The whole scenario is bullish. My testing signal agrees with the green future, but pointing me to fade this gap again. I really don't have an idea where the market will go today. It sure will be volatile though. The "fair value" theory suggest that we will get a pull back to 7700 before any bounce. I'm sealing the top of today to 8000. A real bull will take it to 8100.

Mich Sentiment-Prel. will come out at 9:45am during the trading day. It's gonna drive this market go crazy either way, my bet is the downside, as it measures the data prior to yesterday's move. A pull back could start from there. Whether the pull back can last or not, I don't have a clue.

INDU's 5 day MACD support at -40, resistance at +80. We will break the resistance right away after market open. Watch for a turning point at +100 and +120. +120 is the max I've seen on MACD so far... that could be a pretty good point to gun for the pull back. I think +100 is more likely.

INDU should have a trading range between 7700 and 8000.
NDX should have a trading range between 1005 and 1050.
SPX should have a trading range between 820 and 850.
I have a rather big range today, the support is based on the "fair value" theory. JMHO.