This is our last weekly outlook for 2011.
Markets rose nicely last week, pretty much as expected.
Let’s have a look at the Nasdaq chart (click for larger imaage);
We remain in a sideways market without clear direction.
Our lunar Green period is about to end, so we will start the new year in Red Period.
Of course, the thin trading in a holiday shortened week can lead to unusual moves and there may be market participants who try to use it to push the Nasdaq above the recent resistance levels (~ 2650 on the Nasdaq).
We are setting up for a major move up or down, which is likely to start in January or February.
The likely direction of the move is going to be UP.
Be ready to buy if the Nasdaq goes above 2700.
More about this in my upcoming annual forecasts.