DJI 20611 is the key today
|S&P 500 24/03/17
S&P tried to correct but faltered at 2358 which was the 50% short term fib...This provoked another assault on the downside.. but no real damage was done and the market held 2342...slightly up today pre open ...again we are looking at 2353...If above here we look for 2358 to 2361...I would take profits in this area...Only re-instate longs above 2363 for 2374/75...Now on the downside we again have 2342 but more importantly 2336...This is major support for the S&P...it will be quite dire if we lose this support because we would be looking at 2317 as a viable targeted area....
DJI 20611 is the key today....because the trendline I have been watching intersects with this 38.2 med term fib ad this is what held us Wednesday....It might be prudent to attempt longs down to here keeping stops below 20580....as long as we can hold this region above stated there is a good chance we can remain in the uptrend and look initially for 20784 to 20830....Cover longs to here...Only above 20850 would we see further recovery..
Nas remains looking weak at this point...we are on course for a reversal week if the close is below 5360....That was last weeks low....Sop will offer support on a close basis tonight....we fail to close above here we not only have a key day reversal evident...we have a reversal week...Now the Nas does have these reversal patterns....most work.. some don't....but if we do see a close below 5360 especially with the weeklies looking to turn lower then the next few weeks will be rocky for Nas... we are seeing a " dead cat bounce" currently...and these usually last no more than 3 days.... So a dead cat bounce top should not exceed 5395....If this area is seen it will encourage sellers back in the market...and hopefully give it a bit of a shove lower.... A close above 5360 does not take the real pressure off....but a close above 5400 would....
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