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US Stock Indices - Short-Term Outlook -18 March 2012

Published 03/19/2012, 03:31 AM
Updated 05/14/2017, 06:45 AM
NDX
-

Nasdaq 100:

 Nasdaq 100:Nasdaq 100: 2712.82

Short-Term Trend: uptrend

Outlook:

Last week I favored shorts on break of 2575 level. However the market did not even look at this level and rallied strongly to new highs. The fact that the market surpassed the 2682 level is even more bullish. But as you can guess, the market is also quite overbought. Anyways, the path of least resistance is higher and as long as the prices stay abv 2650/40, the bulls are in charge. The next upside target is at 2762 followed by 2820.
On the downside, below 2650/40 negates, signals a Short-Term top is finally in place....

Strategy: Stand aside.

S&P500:

S&P500:
S&P500:

1404.12

Short-Term Trend: uptrend

Outlook:

Last week I favored shorts on break of 1340 level but such a break did not occur. Instead the market rallied strongly and moved abv the 1378 level. Thus the daily chart looks as bullish as ever and gains twd the 1454 (the next Fibonacci level of importannce) are expected. Bare in mind though that the market is heavily overbought and if a pullback starts, it may be quite dramatic, even if it is short-lived. A move below 1340 will be a confirmation that a Short-Term top is finally in place.

Strategy: Stand aside.

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