FYI | Sep 21 2013
The uptrend holds for a 14th week. The market is overbought for the third week in a row. The Weekly RSI is at peak levels. Market failed at 5318 which was Fridays daily upper range and is now a important resistance level As with last week any weakness in the market will signal the peak and the bulls will need to pull another rabbit out of the hat to stop a pullback. The daily will open the week on a downtrend and an open under 5265 will confirm the peak and falls of 3%-5% may be seen. SP500 record highs and AUDUSD back at 0.95 look like peak levels – refer to website for full reports The market had another breakout last week and this week the bulls will battle to consolidate the breakout.Futures now expire December.
Bulls continue to hold gains with limited upside resistance. A close above 5269 next week will continue the trend. The 14th week of the uptrend shows no resistance above 5300 and break of this level will target higher levels.
Bears continue to see supports tested and stops under pressure without a change in trend For the second week in a row the stop is around Fridays close level indicating any weakness next week is expected to confirm a medium term peak in the market. A close below 5269 next week will be the start of a downtrend. Downside target is 5185. A break of 5185 will lead to a rapid sell off – Flash crash.
iQUANT FORECAST RANGE 5185 – 5300
PIVOT POINT 5269
The uptrend holds for a 14th week. The market is overbought for the third week in a row The Weekly RSI is at peak levels Market failed at 5318 which was Fridays daily upper range and is now a important resistance level As with last week any weakness in the market will signal the peak and the bulls will need to pull another rabbit out of the hat to stop a pullback The daily will open the week on a downtrend and an open under 5265 will confirm the peak and falls of 3% 5% may be seen SP500 record highs and AUDUSD back at 0.95 look like peak levels – refer to website for full reports The market had another breakout last week and this week the bulls will battle to consolidate the breakout.Futures now expire December.
Bulls continue to hold gains with limited upside resistance. A close above 5269 next week will continue the trend. The 14th week of the uptrend shows no resistance above 5300 and break of this level will target higher levels.
Bears continue to see supports tested and stops under pressure without a change in trend For the second week in a row the stop is around Fridays close level indicating any weakness next week is expected to confirm a medium term peak in the market. A close below 5269 next week will be the start of a downtrend. Downside target is 5185. A break of 5185 will lead to a rapid sell off – Flash crash.
iQUANT FORECAST RANGE 5185 – 5300
PIVOT POINT 5269
Review of prediction from 13th September 2013 for last week
The uptrend holds for a 13th week. All previous resistance levels have been broken and the market looks for the next direction. The short term daily stop for Monday is 5235 and the weekly stop is 5228 confirming the current levels in the market to be a critical pivot point for the medium term direction of the market. The important supports for next week are 5220 and 5206. Upside resistance is limited and a break of last weeks high will see another breakout above 5300. AUDUSD has retested the 0.932 peaks and is back at the 0.923 pivot. SP500 is trading up against the 1690 resistance and also looks for a medium term direction.
The market has broken out and this week will be important for the medium term direction of the markets. Futures expiry on Thursday will see volume increases as positions are rolled to December.
Bulls continue to hold gains with limited upside resistance. A close above 5228 next week will continue the trend. The 13th week of the uptrend shows no resistance above 5256 and break of this level will target 5300.
Bears got squeezed last week. The stop for next week is around current levels indicating any weakness next week is expected to confirm a medium term peak in the market. A close below 5228 next week will be the start of a downtrend. Downside target is 5148. A break of 5148 will lead to a rapid sell off – Flash crash.
iQUANT FORECAST RANGE 5148 – 5256
PIVOT POINT 5228
ACTUAL 5220 – 5318
Monday started with a rally but all the action came Thursday. The weekly support at 5228 was tested twice and provided good support, The break of 5256 targeted 5300 as expected. Overnight on Thursday the market had a peak at 5318 and Friday the market drifted lower to close on a big support near 5265 We see the market overbought for the third week in a row above 5256 Short term daily closed the week on a downtrend and volume selling was seen at the close on Friday.
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ASX200 report tracks the December ASX200 SPI. The ASX200 index is currently trading at a 5 point discount to the futures. All levels in this report refer to the ASX200 SPI futures
The information contained in this communication is general information only. Any advice is general advice only. Neither your personal objectives, financial situation or needs have not been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Iquant Systems Pty Ltd (CAR No.435627) is a corporate authorised representative of Avestra Capital Pty Ltd (AFSL No. 292464).
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