Key reversal levels for week of July 8, 2013

Our key reversal levels going into next week:

Status Key (W) Mom (W) Mode Key (D) Mom (D)
Nasdaq BULL S: 3255 Down RALLY S: 3406 Up
S&P 500 BULL S: 1548 Down RALLY * S: 1612 Up
Nikkei BULL S: 12202 Down RALLY S: 13368 Up
FTSE 100 BULL * S: 6222 Down RALLY S: 6315 Up
DAX BEAR R: 8082 Down DECLINE R: 8105 Up
Bonds (TLT) BEAR R: 117.81 Down DECLINE R: 112.60 Down *
Gold (spot) BEAR R: 1479 Down DECLINE R: 1306 Up
Euro/US$ BEAR * R: 1.3188 Down DECLINE R: 1.3130 Down
Crude Oil(CL) BULL S: 91.77 Up RALLY S: 95.78 Up

(Legend: W = weekly, D = daily, R = resistance, S = support, Mom = momentum, * = change from previous week/day)

Important developments:

* Most stock markets are in rally mode again and the daily momentum remains up. The FTSE 100 has closed above its weekly key and is now in bull status.

* Only the German DAX index is lagging and has not yet made it above its key reversal levels, although its daily momentum is still up.

* The weekly momentum remains down for all stock markets, which means more strength is needed before we can declare the recent market correction over.

* Bonds (TLT) has seen its daily momentum turn down again, which means it is too early to declare a short term bottom.

* Gold is seeing its first positive sign in a long time, as its daily momentum has turned up last week. This means there is a good chance it will go on to test its daily key reversal level, which is currently at $1306. A close above that level would mean gold has entered rally mode. A failure to close above its daily key reversal in the coming weeks will mean that the decline is ongoing.

* The Euro has weakened further and closed the week below its key support, which means it is now in bear status.

* Oil has continued to rise and remains positive on a weekly and daily basis.


Good luck,



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By Dan

Author of LunaticTrader and Reversal Levels method. Stock market forecasts based on proprietary indicators, seasonal patterns and moon cycles.


  1. * correction
    2 years – short term
    10 years main bond 125/37 price now
    30 years
    10 years us bond is the compas of the market wich tell us where we r going too
    please add it and india nifty 50 is importent market too tnx

    1. Yes, I know there are many different maturities, but they are all very highly correlated with each other and with the respective etf that exist for them. So I do not intend to add too many of them. I will probably first add German bonds and maybe Japanese, because at least they may move in different direction from the US dollar interest rates (and thus bonds).
      If I add Indian stock market it is going to be Sensex index.
      But all will have to wait until I am ready for them.


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