This past week we saw a top in the markets just as we expected and mentioned here and in our daily comments for our subscribers during the past two weeks. Last week we said the markets were on the verge of breaking down. Our timing analysis showed us a top would be hit on the 18th of January. The markets were closed on Monday so that top was hit on the 19th. We had a target price of 1221 for the SPX and that was not hit so there is a slight chance that the market will make another run up sometime this year before breaking down.
The move down was strong and fast. The markets rarely go straight down, just as they don't go straight up, so a bounce should be expected and could start early this coming week but by Thursday at the latest.
All moves up in this market are now selling opportunities. The short interest is very high so a little bounce could easily become a panic to get out of short positions and cause the move to go higher than it would have otherwise. The SPX and other indexes are now back in the channels that they were in for most of November and December so there is a good chance that they will trade back and fourth in this area before breaking lower. A break of the 1084 area on SPX will be a first sign of much lower prices to come.
The Nasdaq Composite Index
First support is at 2185and 2115. Resistance is at 2270 and 2300 and 2325.
Standard and Poors SP-500 index
First support is at 1084, and 1021. Resistance is at 1115, 1133 and 1200.
The Dow Jones Industrial Averages Index
Support is at 10540, 10415 and 10194. Resistance is at 10666, 10800 and 11037.
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The KBW Bank Index
Support is at 45.45 and 44.90. Resistance is at 47.70 and 48.00.
GOLD - via the GLD
GLD Support is at 107, and 105. Resistance is at 108, and 110.
OIL (light sweet crude)
Oil continued lower but is now over sold, so a bounce should be expected.
The US Dollar (Dollar Index ) The U.S. Dollar continued higher this past week breaking and closing above resistance. Our first target for the US Dollar is 80.10 then 81.93. We expect the current up trend will last through the end of March. That does not mean we will not get corrections on the way there. Support is at 78.00, 77.75 and 77.60. Resistance is at 78.80 and 79.50.
This past week we saw a top in the markets just as we expected and mentioned here and in our daily comments for our subscribers during the past two weeks. Last week we said the markets were on the verge of breaking down. Our timing analysis showed us a top would be hit on the 18th of January. The markets were closed on Monday so that top was hit on the 19th. We had a target price of 1221 for the SPX and that was not hit so there is a slight chance that the market will make another run up sometime this year before breaking down.
