After the big move up last week, the markets, not surprisingly, find themselves facing some stiff resistance this coming week. The major indices do look a bit overextended and I don't see the markets breaking these resistance levels without a period of consolidation or a mild pullback first. Remember, we have been in a range bound market for months now, and just as 1040 proved to be very strong support on the S&P, 1130 will also be a tough nut to crack.
S&P - MA(200) will be the next resistance level followed by the all important 1130.
Nasdaq - Gapped up above MA(50) on Friday and held up well after that. MA(200) coming up followed by the all important 2325, which if anything, is even stronger resistance than 1130 on S&P. That being said, I am a buyer on dips here and would love to see a successful test of support at MA(50).
RUT - Broke up above the upper trendline on Friday and will face MA(200) first thing on Monday. Also looking overextended. Would love to see a break of MA(200) here followed by a successful test of the same or the upper trendline.
Here are the links to a few high probability setups for next week (Part 1 and Part 2) and also the Chart of the Day.
Take care and good luck!
No comments:
Post a Comment