IndexPulse TrendWatch for Wednesday
Overall Market:
Long Term: Short
Medium Term: Short
Short Term: Flat
Time Frame and Trading Signals: as stated in iBox
Futures are slightly red. FTSE is trading close to LOD. TNX gapped down and trading down, very bearish. The scene doesn't look right here. The open will get is below 7700, which I think it's a shake. From the "fair value" LOD signal theory, we should get a bounce back to 7750 today after the initial sell off, before the second phase of the slide. 7800 is the max INDU can go today. For medium term, it's still possible to reach 8100, but I'm close to lowering it to 8000 (actually a bit lower than that). I don't think we will drop a lot today (if so, it will be very nasty), but don't think we have lots of upside, so I put flat for short term. The recent weakness could be due to the up coming UN meeting on Friday. A drop below 7600 should get us to the October low before the war.
ISM Services will come out at 10:00am, and Fed's Beige Book number will come out at 2:00pm. Don't think that they can affect the market by more than 10 min.
INDU's 5 day MACD support at -45, resistance at +30. Not sure if MACD will test the support, but I'll be buying for a bounce there, as a gap and snap is on the deck on my book.
INDU should have a trading range between 7650 and 7800.
NDX should have a trading range between 970 and 990.
SPX should have a trading range between 815 and 830.
A tight range day provided we didn't drop below important support. We are now starting the breakdown of the trading range, it could get really nasty real fast here. I'm just betting we will get a flat day before more slide. JMHO.
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