Key reversal levels for week of February 24, 2014

Key reversal levels for next week:

Weekly	Current	Key (W)	MoM (W)	Weeks	% Ch.
Nasdaq	4,263.41	3,903.20	6.03	59	38.01
S&P 500	1,836.25	1,766.65	2.27	64	29.65
Nikkei	14,865.67	15,239.04	-1.45	2	1.49
FTSE 100	6,838.10	6,554.90	0.42	0	0.00
DAX	9,656.95	9,056.11	3.64	32	17.23
Bonds (TLT)	106.67	104.84	2.86	4	-0.51
Gold (spot)	1,323.79	1,262.47	0.72	1	0.43
$EURUSD	1.3735	1.3499	0.64	30	3.41
Oil (CL)	102.20	96.62	1.02	1	2.08

(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:

* Nasdaq, S&P 500 and FTSE100 are back to fully bullish with upward MoM. Nikkei remains the weaker market, with the DAX still hesitating as well.

* $EURUSD is seeing MoM turn up again, so bullish tendency for euro continues.

Latest daily key reversal levels:

21/02/2014	Current	Key (D)	MoM (D)	Days	% Ch.	Str. #
Nasdaq	4,263.41	4,152.01	7.95	9	3.35	1
S&P 500	1,836.25	1,802.48	6.71	7	0.89	1
Nikkei	14,865.67	15,029.70	-1.33	19	-1.50	12
FTSE 100	6,838.10	6,645.03	6.59	8	2.48	1
DAX	9,656.95	9,434.48	5.74	8	1.60	6
Bonds (TLT)	106.67	105.86	-1.85	29	2.79	17
Gold (spot)	1,323.79	1,278.36	7.13	30	6.07	2
$EURUSD	1.3735	1.3647	4.16	10	0.88	1
Oil (CL)	102.20	98.24	7.37	21	5.70	1

(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:

* All daily signals are nicely in the green (see %Ch. column). This shows the merits of simple trend following versus trying to forecast the next bottom or top.

* Most stock indexes remain in strong bullish mode on the daily level, with Nikkei and DAX being the exceptions. Eventually the current stock market rally will peter out and then we will see MoM turn down for most markets.

* Bonds (TLT), euro and oil are also in fully bullish pictures wit no signs of a top yet. Just go along until the bus stops.

* Gold is hesitating after its recent strong rally. With MoM still at a relatively high 7.13 this pauze could continue for a while. If MoM turns back up before gold drops below its key reversal level, then it will be a good chance to enter (or add to) long gold positions. In a young bull market it is important to try to buy the dips.

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

Key Targets	Top1	Top2	Bottom1	Bottom2
Nasdaq	4390		3797	3530
S&P 500	1870	1926	1755	1641
Nikkei	17220		13860	12940
FTSE 100	6800	7150	6230	5980 *
DAX	9800	10120	8715	8510
Bonds (TLT)	111.80	114.20	102	96.25
Gold (spot)	1424 *		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:

* For gold we have an improved Top1 target at $1424

* FTSE100 has an adjusted Bottom2 target of 5980

* Nasdaq has pushed above its long standing target at 4200, so 4390 is now the next Top1 target.

PS: if you are looking for key reversal levels for other world markets or individual stocks, then follow me on Twitter. We also try to tweet the daily key reversal levels every day.

Good luck, Danny