Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Wednesday

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

Time Frame and Trading Signals: as stated in iBox

Futures are green. FTSE is at HOD. TNX gapped up and filling the gap. It's a mixed scenario out there. My testing signal suggests a red futures, means that we should fade this gap up as well. From my book, NDX is currently overbought, while INDU and SPX are just a step away from overbought. I will seal the top today at 8300. On the daily chart, 200SMA is close to 8400, keep that in mind, don't get too bullish, upside is very limited.

No economic number will come out during the trading day.

INDU's 5 day MACD support at -40, resistance at +80. The next time we retest the resistance, it should be a really really good short. We didn't get that yesterday.

INDU should have a trading range between 8050 and 8300.
NDX should have a trading range between 1065 and 1095.
SPX should have a trading range between 850 and 880.
JMHO.