Levels to watch
Posted by Danny on June 6, 2013
Yesterday, all three major US stock indices closed below my daily trailing stop-loss levels. It is the first time it happens this year. This doesn’t mean we are in a bear market already, as the stocks may still rebound. But, if they also fall below my weekly stop-loss levels, then we will be in a bear market.
I calculate these key levels on a daily and weekly basis with a private formula.
Here are the currrent levels to watch.
For the bull market to resume we now need a daily close above these levels:
Dow Jones Industrials: 15231
S&P 500: 1645
Nasdaq Composite: 3454
We will be in a bear market when we get a weekly close below these levels:
Dow Jones Industrials: 14266
S&P 500: 1535
Nasdaq Composite: 3223
Gold has been in an ongoing bear market for months, but a daily close above $1423 would be a short term buy signal. It would currently take a weekly close above $1555 to indicate that gold has entered a new bull market.
The Euro/$ has recently broken above my daily key level, but now it needs a weekly close above 1.314 to get into bull market mode. If the Euro closes below the daily key level at 1.2928, then it would indicate a continuing bear move. So, here the range is very small and the euro is likely to chose a direction soon.
I am planning to add this information in my weekly blog posts from now onwards.