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):
(* = 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