Update US markets view

  1. 5,447 Posts.

    The SP500 and the NASDAQ got the opportunity to close pesky gaps
    today and turned on a relative dime to close in positive territory by
    the end of the day.

    The DOW and SP500 and NASDAQ have all held their support levels and
    managed to make higher lows in this 4 day selloff which is exactly
    the setup we like to see.

    Barring any bad news event which can temporarily interfere with the
    best of intentions, indices should end higher tomorrow. We want to
    see the SP back above 1089, which should lead to the next resistance
    range of 1102-1116, and for the NASDAQ we want to see 1680 which
    would lead to immediate resistance of 1696-1708. Watch 10175 for an
    upside breakout run for the DOW.

    Proxy Traders in the NASDAQ and SP500 proxies will still remain flat
    at this point, with an entry or re-entry not triggered before Friday
    at the earliest, IF signals and confirmations are met. That would
    mean that price would have to be below the exit point, but above last
    Friday's close along with our own filter. At this point it is highly
    unlikely that we would re-enter to the bear side.

    The NASDAQ Tech Index has seen the 'Smart Money" reverse their
    net-short positions after almost a year and a half as of a week ago
    Tuesday. This will not trigger a buy into Tech long funds on our
    proxytrader unless we see confirmation this coming Friday.
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