Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Thursday

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

Time Frame and Trading Signals: as stated in iBox

I forgot to change the Medium Term view to Long... sorry about that.

Futures are red. FTSE is trading flat with some up and down swings. TNX gapped down and continue to slide, looks really ugly. It's a mixed scenario out there. My testing signal suggests a green futures, means that we should fade this gap down. However, fading it is not recommended, I would rather short into that rally. Again NDX is overbought, should sink anytime soon. INDU and SPX will follow.

Philadelphia Fed will come out during at 12:00, and FOMC Minutes will come out at 14:00 during the trading day. The first number is going to have an affect to the market for 10 min. In this situation, it should be a sell off signal.

INDU's 5 day MACD support at -30, resistance at +75. I don't think we will get to the resistance in the coming sell off.

INDU should have a trading range between 8100 and 8300.
NDX should have a trading range between 1060 and 1080.
SPX should have a trading range between 855 and 880.
expecting a sell off, but not a huge one JMHO.