LunaticTrader

Investing with the Moon

Key reversal levels for week of May 26, 2014

Posted by Danny on May 25, 2014

Comments for this week :

* In the weekly key reversal levels for major stock indexes we have momentum (MoM) turning up for the Nasdaq and Nikkei. This means all major markets are trying to push higher again.

* On the daily level markets have turned to bullish mode as well. It is always hard to tell how far a move will carry. Best is to go with the flow and respond when the situation changes again.

* In other world markets the Hong Kong and Russian indexes are turning bullish. This leaves only a few countries with bearish setups.

* Bonds (TLT) are hesitating since they reached their Top1 target at 114.60. Money may start flowing back into stocks and that would weigh on bond prices going forward.

* Gold is not moving at all recently. It remains mildy bullish in our key reversal system,  but it wouldn’t take much to turn it fully bearish. A big move is likely so I am watching the key levels carefully on this one.

* The Euro has gone fully bearish. Needs a weekly close above 1.3829 to get in the bullish camp again.

* Our weekly key reversal levels for the 30 Dow stocks are available here. 25 stocks are bullish this week, up from 24 last week. Above 20 is healthy, see : Keeping an eye on the Dow stocks.

***

Here are the tables.

Key reversal levels for next week:

Weekly Current Mode Key (W) MoM (W) Weeks % Ch.
Nasdaq 4,185.81 3,990.47 -1.25 72 35.50
S&P 500 1,900.53 1,807.91 3.23 77 34.19
Nikkei 14,462.17 14,852.38 -2.17 10 1.46
FTSE 100 6,815.80 6,653.81 2.09 3 -0.10
DAX 9,768.01 9,205.97 1.75 8 1.52
Bonds (TLT) 112.70 107.89 5.16 17 5.64
Gold (spot) 1,292.41 1,280.24 -0.60 14 -1.95
$EURUSD 1.3628 1.3829 0.31 1 -0.45
Oil (CL) 104.35 98.86 0.99 14 4.22

(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/ )

Latest daily key reversal levels:

23/05/2014 Current W Mode Key (D) MoM (D) Days % Ch. Str. #
Nasdaq 4,185.81 4,091.34 1.34 2 1.20 1
S&P 500 1,900.53 1,874.22 0.97 2 0.65 1
Nikkei 14,462.17 14,148.00 -1.26 1 0.35 13
FTSE 100 6,815.80 6,767.96 1.25 22 2.01 2
DAX 9,768.01 9,570.23 2.33 22 1.73 17
Bonds (TLT) 112.70 111.56 2.52 33 3.61 2
Gold (spot) 1,292.41 1,286.13 -0.41 7 -1.01 6
$EURUSD 1.3628 1.3769 -5.37 10 -0.87 27
Oil (CL) 104.35 101.19 5.11 8 2.39 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/ )

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

Key Targets Top1 Top2 Bottom1 Bottom2
Nasdaq 4390 4531 3975 3742
S&P 500 1870 1950 1755 1641
Nikkei 15650 17220 13860 12940
FTSE 100 6800 7110 * 6230 5980
DAX 9800 10240 8715 8510
Bonds (TLT) 114.60 115.70 102 96.25
Gold (spot) 1424 1541 1185 1075
$EURUSD 1.3950 1.42 1.3390 1.2870
Crude Oil(CL) 104 109.80 94.60 91.85

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

Good luck, Danny

 

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