Monday Market Momentum – Changing for the Better?
As I noted Friday, we were due for at least a bounce:
It doesn't really matter why but, as of this morning, the Global consensus is that our fiscal cliff issue may not come to pass and that's cheering up the Global Markets and weakening the Dollar (now 81.08) to give us a little follow-through on Friday's bouncy action. So much so that we should open on the way to our weak bounce lines and, hopefully, get past those and test our strong bounce lines this week. I sent a detailed study to Members earlier this morning but the quick summary of our bounce zones is:
- Dow 12,720 weak, 12,950 strong.
- S&P 1,375 weak, 1,400 strong.
- Nasdaq 2,900 weak, 3,000 strong.
- NYSE 8,000 weak, 8,100 strong.
- Russell 790 weak, 805 strong.
Certainly there is nothing at all to be impressed about with anything less than capturing and holding our weak bounce levels today and moving on to our strong bounce levels by Wednesday. ANY failure of our lows (Dow 12,500, S&P 1,350, Nas 2,825, NYSE 7,900 and Russell 770) is a sign to flip even more bearish but we'll want to see all 5 weak bounces hold and then 3 of 5 strong bounces in order to not go into the holiday weekend with strong hedges (see last Wednesday's post for our Disaster Hedge updates).
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.