Outlook January 24
Posted by Danny on January 24, 2011
We finally got some downturn in the stock market.
The Nasdaq has lost 14 points in the most recent Red Period.
We remain at a critical juncture in many charts.
It looks like last week’s break out to the upside is failing, and we are now sitting on important support as you can see in this chart (click for larger image):
Green Period is now starting. This normally favors a move to the upside.
The market will need it, because any further decline would imply a breakout to the downside and probably lead to a larger decline.
So look for the Nasdaq to claw its way back to 2750, but be ready to get out if we fall below 2670.
Green Period doesn’t guarantee the market will go up, and there is considerable risk for a break down at this point on the chart.
Also notice that the momentum reading remains very weak.
Be well, Danny
LunaticTrader 
vinod said
danny,
good morning, as always your thanks for your great insight to stock market predictions. it is working exactly what you have said. one question about Gold ::: it is totally broken at present, Do you by any chance see any recovery in Gold in near term at all?????
please be kind enough to expand further if you can ! ! !
thanks,
vinod
Danny said
Hi Vinod,
I will be adding gold and bonds in the next version of LunaticTrader software. The work on it is nearly finished.
For my idea about gold and other markets you can check out my Four Pillars Finance blog. I posted an updated outlook recently.
Danny