LunaticTrader

Investing with the Moon

Key reversal levels for week of January 27, 2014

Posted by Danny on January 26, 2014

Key reversal levels for this week:

Weekly Current Mode Key (W) MoM (W) Weeks % Ch.
Nasdaq 4,128.17 3,863.36 8.06 55 33.63
S&P 500 1,790.29 1,761.10 5.94 60 26.40
Nikkei 15,391.56 14,815.61 5.97 61 62.60
FTSE 100 6,663.70 6,570.60 2.27 4 -1.29
DAX 9,392.02 8,999.01 6.41 28 14.01
Bonds (TLT) 107.48 104.27 -1.04 0 0.00
Gold (spot) 1,269.80 1,309.92 -2.92 57 -23.36
$EURUSD 1.3670 1.3460 1.54 26 2.92
Oil (CL) 96.64 100.20 -2.12 13 -1.27

(Legend: Mode: green = bullish, pale green = weak bullish – may have peaked, red = bearish, pink = mildly bearish – may have bottomed | Key: key reversal level | MoM indicator: green = rising, red = falling | Weeks: weeks since start of current bullish or bearish mode | % Ch: percent change since start of current mode | yellow box: changed direction) (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 weekly key reversal levels:

* Stock market weakness that started showing up a few weeks ago is continuing. Weekly MoM remains down for most indexes, and some markets are coming close to their weekly key reversal levels. At this point it is only a pullback, but if weekly key reversal levels get broken to the downside it marks the start of a bear market or at least a more prolonged correction.

* Bonds (TLT) have turned bullish.

Daily key reversal levels as of today:

Daily Current Mode Key (D) MoM (D) Days % Ch.
Nasdaq 4,128.17 4,185.27 4.21 0 0.00
S&P 500 1,790.29 1,835.86 -0.16 0 0.00
Nikkei 15,391.56 15,817.08 -2.37 0 0.00
FTSE 100 6,663.70 6,759.83 3.27 0 0.00
DAX 9,392.02 9,590.68 3.97 0 0.00
Bonds (TLT) 107.48 104.25 8.68 10 3.58
Gold (spot) 1,269.80 1,231.13 2.48 10 1.75
$EURUSD 1.3670 1.3580 -1.26 1 -0.18
Oil (CL) 96.64 94.53 2.33 2 -0.05

(Legend: Mode : green = bullish, pale green = weak bullish – may have peaked, red = bearish, pink = mildly bearish – may have bottomed | Key: key reversal level | MoM indicator: green = rising, red = falling | Days: days since start of current bullish or bearish mode | % Ch: percent change since start of current mode | yellow box: changed direction) (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 daily key reversal levels:

* All covered stock indexes have broken below their daily key reversal levels and are now in declining mode. Whether this will be yet another brief pullback or turn into something bigger remains to be seen. As long as MoM is to the downside there is no reason to buy.

* Bonds (TLT) and gold are continuing their recent rally.

* $EURUSD and Crude Oil are back into rally mode.

Our current key target zones (we use a +/-1% zone around these targets):

Key Targets Top1 Top2 Bottom1 Bottom2
Nasdaq 4200 4390 3530 3210
S&P 500 1870 1926 1755 1576
Nikkei 17220 13860 * 12940 *
FTSE 100 6800 7150 6230 6110
DAX 9800 10120 8715 7870
Bonds (TLT) 111.80 128.50 102 96.25
Gold (spot) 1298 1448 1153 1075
$EURUSD 1.3950 1.42 1.3435 1.2870
Crude Oil(CL) 105 113 89.50 86.00

(* = new target ) (for more details about these key targets, see: https://lunatictrader.wordpress.com/2013/08/20/key-target-levels/ )

Important developments last week:

* A new Bottom1 target for Nikkei at 13860

* Stock indexes tested their Top1 targets and failed to break above them. This is their second failure, so now we get a move to the downside. We can start watching for the Bottom1 targets to be tested in some markets.

* For gold, oil, Euro and bonds we can now set sights on their Top1 targets.

 

PS: if you are looking for key reversal levels for other world markets or individual stocks, then check out my Twitter account.

Good luck, Danny

 

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