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US Stock Indices, Short-Term Outlook: October 29, 2012

Published 10/29/2012, 03:29 AM
Updated 05/14/2017, 06:45 AM
NDX
-
Nasdaq 100

Nasdaq 100
Nasdaq 100:

2665.93

Short-Term Trend: downtrend

Outlook:

Nasdaq 100 has continued to make new lows for the current downmove from the Sept top. And the daily chart remains quite negative. So, I retain my previous bearish expectations and continue to expect weakness twd 2544 in the next several weeks.

On the upside, the key resistance is at 2785, but I think that if the bears want to remain in control, they should not let the prices move abv 2750....

Strategy: Holding short from 2797 is favored. Stop=2750.

S&P500
S&P500
S&P500: 1413.91

Short-Term Trend: weak uptrend

Outlook:

With the firm move below 1425 the outlook here has changed a bit. We have a clear reversal pattern on the daily chart and that together with the wave count, suggests the index has topped out already. But on the other hand, the prices are still above the rising 100-day moving average, so there are reasons to be bullish as well. I think that the key support is now at 1395. If we see a firm break below there, the downside pressure will likely increase.
On the upside, a move abv 1440 will bring back the previous bullish mode here...

Strategy: Stand aside.


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