Our key reversal levels going into next week:
| Current | Status | Key (W) | MoM (W) | Mode | Key (D) | MoM (D) | |
| Nasdaq | 3782 | BULL | S: 3499.80 | 6.57 (6.13) | RALLY | S: 3717 | 5.17 (5.69) |
| S&P 500 | 1692 | BULL | S: 1618.60 | 2.71 (2.50) | RALLY | S: 1678.50 | 3.4 (4.86) |
| Nikkei | 14760 | BULL | S: 13012 | 2.44 (1.64) | RALLY | S: 14206 | 5.21 (5.58) |
| FTSE 100 | 6513 | BULL | S: 6365 | 1.40 (1.47) | DECLINE * | R: 6585 | 0.07 (0.79) |
| DAX | 8661 | BULL | S: 8158 | 3.15 (2.54) | RALLY | S: 8502 | 6.17 (7.0) |
| Bonds (TLT) | 106.56 | BEAR | R: 110.43 | -5.0 (-5.83) | RALLY | S: 104.71 | 5.62 (5.19) |
| Gold (spot) | 1336.51 | BEAR | R: 1417.50 | 0.12 (0.43) | DECLINE | R: 1363.50 | -2.38 (-2.69) |
| EURUSD | 1.3520 | BULL | S: 1.3131 | 2.71 (2.24) | RALLY | S: 1.3363 | 5.81 (6.49) |
| Oil (CL) | 102.87 | BULL | S: 99.52 | 3.20 (4.26) | DECLINE | R: 106.03 | -4.95 (-4.76) |
(Legend: W = weekly, D = daily, R = resistance, S = support, MoM = MoM indicator, * = changed from last week)
(for more details about these key levels, see: https://lunatictrader.wordpress.com/key-reversal-levels/ )
(for information about the MoM indicator, see: https://lunatictrader.wordpress.com/2013/09/14/mom-indicator/ )
Important developments in the key reversal levels last week:
* Stock markets seem to be going through an ordinary pullback and stay in rally mode, except for the FTSE100, which continues to display weakness and has fallen into decline mode.
* Daily MoM is down for all markets, showing that the pullback is ongoing, but weekly MoM remains up so there is no reason for panic
* Bonds (TLT) have continued to rally and are now close to testing their weekly key reversal level.
* Gold remains in fully bearish mode. Weekly MoM is still down, while daily MoM is slightly to the upside. Still too early to buy.
* The EURUSD has held on the recent gains, but the daily MoM has turned down, which is a first sign that the rally may have ended. I would sell EURUSD as soon as we see a daily close below the key reversal level at 1.3363
* Oil has continued to go down and may soon be testing its weekly key reversal level. A weekly close below $99.52 would mean that oil has gone into bear status.
And here are our key target zones (we use a +/-1% zone around these targets):
| Key Targets | Top | Top2 | Bottom | Bottom2 |
| Nasdaq | 3830 | 3930 | 3530 | 3210 |
| S&P 500 | 1738 | 1799 | 1576 | 1522 |
| Nikkei | 15850 * | 16580 | 12710 | 10450 |
| FTSE 100 | 6800 | 7100 | 6205 | 6110 |
| DAX | 8920 | 9205 | 7870 | 7210 |
| Bonds (TLT) | 128.50 | 134 | 102 | 96.25 |
| Gold (spot) | 1448 | 1540 | 1215 | 1078 |
| EURUSD | 1.36 | 1.3950 | 1.2870 | 1.2350 |
| Crude Oil(CL) | 109.40 | 121 | 89.50 | 77 |
(* = new target, Bold = closely matches a major weekly key target )
(for more details about these key targets, see: https://lunatictrader.wordpress.com/2013/08/20/key-target-levels/ )
Important developments last week:
* We have a new top target for Nikkei index at 15850
* The EURUSD remains stuck near its upside target at 1.36
Good luck,
Danny
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