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Short-Term Stock Index Outlook: December 10,2012

Published 12/10/2012, 12:24 AM
Updated 05/14/2017, 06:45 AM
NDX
-
Nasdaq 100
Nasdaq 100
Nasdaq 100:

2640.02

Short-Term Trend: Sideways

Outlook: Last Monday Nasdaq 100 moved briefly above the 2682 Fibonacci level but returned as quickly below it and spent the entire week trading below there. The immediate outlook remains positive and I expect a resumption of the upmove from the mid-November low. Most likely, this uptrend will resume this coming week. But initially we may see marginal weakness toward 2600 and possibly 2580/70. But as long as the prices stay above 2555, the bulls are in control. Ultimately, I expect a rally toward 2762 before this leg up is over...

Strategy: Longs favored at 2600 against 2555. Target=2760

S&P500
S&P500
S&P500: 1417.01

Short-Term Trend: Uptrend

Outlook: S&P500 has traded quietly for the past week as it has stayed between 1403 and 1423. Thus, the daily chart remains positive and I continue to expect higher prices for this upmove from the November low. A move above 1430 will confirm this bullish view and should bring gains toward at least 1454 level, if not to the September top at 1475. On the downside, only sustained break below 1378 will negate the above bullish view....

Strategy: Holding long from 1395 is favored. Stop=1365. Target=1455.

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