WHAT DOES THE MARKET WANT TO DO?
Today the markets traded below the narrow range listed below. For a while, all the markets traded below the January low, but recover by the market close to challenge the January highs. Which one will prevail? Stay tuned.
It is time for the market to tell us what to do. See the chart below: For instance, if the Dow breaks above 17,400 and then makes new highs above 18,086, it would appear that my Lone Bear scenario is either wrong or delayed. However, if the Dow breaks below 17,147 and then breaks below the December low of 17,069 my Bearish scenario would be on track for the Lone Bear Letter! It is the same with reading the NASDAQ and S&P.
Dow NASDAQ S&P
Current 17,361 4,676 2,020
December High 18,086 4,814 2,092
January High 17,400 4,700 2,013
January Low 17,147 4,605 1,991
December Low 17,069 4,545 1,973
|Breakout Points||DJIA||NASDAQ||S&P 500|
|Short Term Up (Resistance)||18,086||4,814||2,092|
|Short Term Down (Support)||17,147/17,069||4605/4,545||1,991/1,973|
|Int. Term Up (Resistance)||18,062 See Fibonacci Projections above||5,002 See Fibonacci Projections above||2,486 See Fibonacci Projections above|
|Int. Term Down (Support)||15,855 /15,356 /14,688||4,166 3,986/3294||1,820 /1,560|
|Long Term Up (Resistance)||18,974||5,132||3,044|
|Long Term Down Fibonacci Support||50%12,000 62% 10,750||50%2,958 62% 2,555||50%1,390 62% 1,177|
|10 yr Treasury 1.67||Gold 1,275
|Oil 49.90 +0.33|