Nasdaq 100
Nasdaq 100:
2737.11
Short-Term Trend: Sideways
Outlook: There was a key reversal day last week on this market - on Wednesday. This day also represents an island reversal pattern on the daily chart. Not the market gapped up on Wednesday and then gapped down on Thursday. That's a negative pattern and it suggests wave E is likely over. But a decline below 2682 is required to confirm this bearish outlook. On the upside, a move abv 2669 will negate and will risk a move toward 2820 before prospects of a trend reversal.
Strategy: Shorts favored at market. Stop=2770.
S&P500
S&P500: 1499.97
Short-Term Trend: Uptrend
Outlook: Unlike Nasdaq 100 which made a key reversal pattern last week, S&P500 remains in strong uptrend and is making new highs almost every day. That's quite unusual but I think that the weakness in Nasdaq 100 is a warning sign of what is going to happen here as well. I expect a trend reversal soon. But right now the trend is still on the upside and is very strong so it is not reasonable to guess the top here. Instead we need to be patient until we see clear signs that this uptrend has reversed. A move below 1470 will be such a sign.
Strategy: Stand aside.