Good morning,
The market was essentially flat yesterday and the only place with strength was the NASDAQ. This divergence won’t last for long. It will either be resolved in an explosive 3-day rally to new highs or a big decline if the SP500 goes below 1000. It is not 100% clear what is going on in the market right now, but it could be that the market is being held up in order for those in the know to get maximum short the index tracker stocks like SPY and QQQ. If this is the case we will know within the next 24 hours. If the SP500 should go under a 1000 there may be support around 994. I just think that after the explosive rally on Monday we should either see continuation today or we will go down again.
If we do get a rally the signal will be to take out 1008.50 where the market hit a target point. The next goal is 1014 and then 1021.
The FTSE 100 is just trading sideways and the attached chart will show you that it needs to get above 4085 to have a chance of moving higher. While it is under this number it is a short in my book.
The DAX is trading below 3340 in the future index. This is bearish as well, and it needs to get above 3360 to have a crack at the recent highs.
The path for today is again providing me with two solutions. I will go with my preference. If the second scenario becomes more likely after the first 15 minutes of trading I will post it.