Key reversal levels for next week:
| Weekly | Current | Mode | Key (W) | MoM (W) | Weeks | % Ch. |
|---|---|---|---|---|---|---|
| Nasdaq | 4,125.86 | 3,876.75 | 6.02 | 57 | 33.56 | |
| S&P 500 | 1,797.02 | 1,760.02 | 2.74 | 62 | 26.88 | |
| Nikkei | 14,462.41 | 15,325.40 | 1.95 | 0 | 0.00 | |
| FTSE 100 | 6,571.70 | 6,692.66 | 0.58 | 1 | 0.94 | |
| DAX | 9,301.92 | 9,013.68 | 4.02 | 30 | 12.92 | |
| Bonds (TLT) | 106.79 | 104.65 | 1.86 | 2 | -0.40 | |
| Gold (spot) | 1,266.95 | 1,303.82 | -1.73 | 59 | -23.53 | |
| $EURUSD | 1.3631 | 1.3464 | 0.47 | 28 | 2.63 | |
| Oil (CL) | 99.88 | 100.10 | -1.09 | 15 | 2.04 |
(Legend: Mode: green = bullish, pale green = weak bullish – may have peaked, red = bearish, pink = mildly bearish – may have bottomed | Key: key reversal level | for more details about these key levels, see: https://lunatictrader.wordpress.com/key-reversal-levels/ )
Comments on the weekly key reversal levels:
* The Nikkei has gone bearish on the weekly level. Momentum (MoM) continues to go down for all covered stock indexes, so it’s still too early to declare the end of the correction.
Latest daily key reversal levels:
| 7/02/2014 | Current | W | Mode | Key (D) | MoM (D) | Days | % Ch. | Str. # |
|---|---|---|---|---|---|---|---|---|
| Nasdaq | 4,125.86 | 4,064.21 | -5.34 | 0 | 0.00 | 33 | ||
| S&P 500 | 1,797.02 | 1,802.99 | -6.43 | 10 | 0.33 | 8 | ||
| Nikkei | 14,462.41 | 15,242.23 | -9.33 | 10 | -4.17 | 11 | ||
| FTSE 100 | 6,571.70 | 6,638.05 | -6.94 | 10 | -1.38 | 12 | ||
| DAX | 9,301.92 | 9,408.58 | -6.02 | 10 | -0.93 | 24 | ||
| Bonds (TLT) | 106.79 | 105.71 | 5.80 | 20 | 2.91 | 2 | ||
| Gold (spot) | 1,266.95 | 1,239.88 | 0.97 | 20 | 1.52 | 29 | ||
| $EURUSD | 1.3631 | 1.3539 | -1.97 | 0 | 0.00 | 33 | ||
| Oil (CL) | 99.88 | 95.83 | 3.48 | 12 | 3.30 | 29 |
(Legend: Mode : green = bullish, pale green = weak bullish – may have peaked, red = bearish, pink = mildly bearish – may have bottomed | Key: key reversal level | W = weekly mode | for more details about these key levels, see: https://lunatictrader.wordpress.com/key-reversal-levels/ )
Comments on the daily key reversal levels:
* Note: We now try to post the daily key reversal levels every day on Twitter or here on the blog when there are extra comments about them.
* Nasdaq is the first stock index to close above its daily key reversal level and get back into bullish mode. This could still prove to be a bull trap. We have to see if other markets go into rally mode as well.
* $EURUSD is back into rally mode.
* For gold and oil we see momentum (MoM) turn back up, which points to a continuation of their recent rally.
Our current key target zones (we use a +/-1% zone around these targets):
| Key Targets | Top1 | Top2 | Bottom1 | Bottom2 |
| Nasdaq | 4200 | 4390 | 3797 * | 3530 |
| S&P 500 | 1870 | 1926 | 1755 | 1641 * |
| Nikkei | 17220 | 13860 | 12940 | |
| FTSE 100 | 6800 | 7150 | 6230 | 6110 |
| DAX | 9800 | 10120 | 8715 | 8510 * |
| Bonds (TLT) | 111.80 | 114.20 * | 102 | 96.25 |
| Gold (spot) | 1298 | 1448 | 1153 | 1075 |
| $EURUSD | 1.3950 | 1.42 | 1.3435 | 1.2870 |
| Crude Oil(CL) | 104 * | 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/ )
Latest developments:
* There is a new Bottom1 target for Nasdaq at 3797.
* For S&P 500 there is a new Bottom2 target at 1641.
* If stock markets continue to rebound then look for a retest of the Top1 targets. If we get another swing to the downside, then look for the Bottom1 targets to be reached.
PS: if you are looking for key reversal levels for other world markets or individual stocks, then follow me on Twitter.
Good luck, Danny
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LunaticTrader 
danny,
thanks again, i again must say about greatness for being Humble and never say not expect failures; a sign of a real gentleman and a great trader. again with hat off , thank you
Danny,
As always with many thanks for your eye opening work and sharing your knowledge with us.
i was looking at long term charts and with Dow, s&p, nasdaq flipping do you still think it would tank during the period you have marked with the line or this will change too
as always with many thanks,
vick
Hi Vicky,
Which long term charts are you referring to?
Danny
danny,
good morning, i meant long term monthly chart and i was reffering to your post of FEBRUARY 3rd post of monthly chart please.
vick
OK. You mean the LT wave chart.
The LT wave will not change, but whether the market will follow it is always another question. At the end of the month we will be able to tell how good or how bad the LT wave has been. As with every other method or indicator, I wouldn’t expect it to work more than 60% of the time.
Maybe I have to do a post about the “60% rule”.
Danny