Nasdaq 100:
2723.81
Short-Term Trend: Sideways
Outlook: In my previous update, I listed two scenarios: one implying that wave E is over and another one suggesting that wave E is still underway. The sharp rally last week confirmed wave E is still intact. The upside potential however is considered limited. The ideal level for a top is seen at 2762, but the market can go as high as 2820.
A move below 2682 at any time will be a strong sign that wave E has already ended and the market has begun a prolonged bear market. Only a move above 2820 level will indicate that something else is going on. In this case, a fast rally toward 2905 will be expected.
Strategy: Stand aside.
S&P500
S&P500: 1467.88
Short-Term Trend: Weak uptrend
Outlook: S&P500 rallied strongly last week and easily moved abv 1454 level. Now it challenges the 1475 top that was achieved in 2012. While a marginal new high abv 1475 is likely, the upside potential is considered quite limited at this stage. I do not expect a move abv 1500 and instead I am looking for a sign of a trend reversal.
But I have to admit there is no top in place yet (in fact in my own account I have only long positions now but they are all in individual stocks). To confirm the index has topped out, a move below 1400 is required.
Strategy: Stand aside.