Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Wednesday

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

Time Frame and Trading Signals: as stated in iBox

Futures are very green. FTSE gapped up, and now trading at LOD after the whole day selloff. TNX gapped up and trading at LOD as well. The market doesn't look as bullish as it seems. My testing signal agrees with the green futures, and suggests that we should fade this gapup. My view is that today is the day to get the Medium Term short, I believe 8500 - 8550 is a good range to go short and hold. The Plan is bullish for a reason, I'm just trying to pick the top today. Looking for a HOD signal to short the market back down.

No economic number will come out during the trading day.

INDU's 5 day MACD support at -45, resistance at +45. Take the short position at or close to +45 is what I will look for today.

INDU should have a trading range between 8300 and 8500.
NDX should have a trading range between 1040 and 1090.
SPX should have a trading range between 880 and 905.
JMHO.