Market Sense and Sentiment

[Bernard Ng]

IndexPulse TrendWatch for Monday

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

Time Frame and Trading Signals: as stated in iBox

Futures are green. FTSE is close for the day. TNX gapped up and consolidating at high. The market looks bullish at the moment. The testing signal suggests that we should fade the gap, and hold on to it till 8500. If the gap running runs through 8600, the refuelled-bull could crush the bear. If we did get the sell off, and hold up at 8500, we could then go thru the roof tomorrow. Again, I don't like to call this market, it can go either way BIG!

10:00 will come out at 10:00am during the trading day. It could affect us for 5 min.

INDU's 5 day MACD support at -45, resistance at +45. A short at +45 is here to stay for a while if we are going to fade the gap, but when it turns up again, we should really close the short position.

INDU should have a trading range between 8500 and 8625.
NDX should have a trading range between 1120 and 1150.
SPX should have a trading range between 920 and 935.
the range doesn't include the breakout scenario JMHO.